The company issued a statement denying that the settlement constitutes "an admission by Merck of any liability or wrongdoing," ABC News reported.

"Merck believes its pricing and sales and marketing policies and practices were consistent with all applicable regulations and contracts during the relevant time," the statement said.

Merck was accused in a whistleblower lawsuit of providing discounts to doctors and hospitals that bought large quantities of Zocor and Vioxx, instead of competing drugs. However, the lawsuit alleged, the company did not offer similar discounts to patients treated through Medicare and other government healthcare programs, ABC said.

Zocor is prescribed to lower cholesterol, while Vioxx -- which the company pulled from the market in September 2004 -- was used in the treatment of arthritis and other pain, ABC reported.

The suit was filed in Philadelphia by former Merck employee H. Dean Steinke.