Attorney General William Sorrell said that the settlement comes after allegations that the drug company produced and sold four products with strength, purity and/or quality levels that were below the standards of the US Food and Drug Administration.
According to a press release from Sorrell's office, the drugs included antidepressant Paxil CR, diabetes medication Avandamet, a drug that fights nausea and one antibiotic ointment.
The attorney general said that the $136,000 payment to the state is twice as much as the Vermont Medicaid program spent to purchase the drugs.
According to the National Center for Biotechnology Information, Paxil was designed to treat depression, panic disorder and social anxiety disorder. However, a small number of children and young adults who took antidepressants like Paxil during clinical studies began to have suicidal thoughts, the center's Web site said.