Lilly admitted to no wrongdoing as to whether it provided enough information about side effects of its Zyprexa schizophrenia drug. Those side effects include weight gain, high blood pressure and diabetes.
The state contended Lilly should pay costs for the side effects.
Lilly also agreed that Alaska will be treated like other states that might settle future claims with Lilly.
Attorneys for Alaska said the settlement was good for the state, and Lilly officials said the settlement was in the company's best interest.