The deal comes 10 days after a trial had begun in federal court in Delaware into allegations the drugmaker tried to keep generic versions of its TriCor cholesterol med from becoming available by making minor changes in formulation. Lawsuits were filed by a group of generic drugmakers, retailers and wholesalers, including Teva Pharmaceuticals, Walgreen and Rite-Aid (Here is the Walgreen suit).

Essentially, Abbott was accused of “product switching,” which involves retiring an existing drug and replacing it with a modified version that is marketed as “new and improved.” However, this prevents pharmacists from substituting a generic for the branded drug when filling prescriptions. The practice is not illegal, but the lawsuit alleges that Abbott acted improperly by using this and other strategies solely to preserve its monopoly on TriCor, which racked up $1.2 billion in sales last year.

The settlement, which Abbott disclosed today in a filing with the Securities and Exchange Commission, does not cover separate lawsuits filed by 25 state attorneys general over the same issue (back story). The Federal Trade Commission is also investigating.

An Abbott spokesman gave us this statement: “Abbott reached settlements to avoid the uncertainty of a trial outcome. We continue to believe our actions were lawful. New formulations of TriCor have provided patients with innovations in use, dosing and convenience. No company has a monopoly on treating patients with high cholesterol.”