LOUISVILLE, Ky. (WDRB) -- EpiPen has agreed to pay more than $12 million to settle a Kentucky lawsuit.

Over $8 million will go to the federal Medicaid program, while more than $3.5 million will go to Kentucky's Medicaid program.

The maker of EpiPen and EpiPen Junior was accused of knowingly misclassifying the drugs as generic to avoid paying higher rebates to Medicaid.

The misclassification reportedly led to taxpayers being overcharged by more than $1 billion.

Copyright 2017 WDRB News. All rights reserved.