LANSING, Mich. (WLNS) – The State of Michigan will be receiving $14.5 million from Mallinckrodt after a nationwide lawsuit settlement.

The company, formerly known as Questcor Pharmaceuticals, was sued by all 50 states, Washington D.C., Puerto Rico and the federal government after allegedly underpaying Medicaid drug rebates.

The total value of the settlement is s $233,707,865.18, plus interest, to be paid over a period of seven years.

Michigan is expected to receive a total of $14,450,193.22.

The first payment is expected by mid-July and is estimated to be around $180,000.

“The government alleges that Mallinckrodt’s conduct violated the Federal False Claims Act and the Michigan Medicaid False Claims Statute and resulted in the submission of false claims to the Michigan Medicaid program,” Attorney General Dana Nessel’s office said.

Mallinckrodt’s U.S. headquarters are located in Bedminster, New Jersey. The settlement involves allegations made between January 1, 2013, through June 30, 2020.