Pfizer and the Department of Justice have filed a joint motion to extend deadlines, allowing for more settlement discussions related to a case alleging the drugmaker defrauded government health programs.

Less than a year ago, 17 states joined two whistleblower lawsuits alleging Wyeth, now owned by Pfizer, failed to report to Medicaid rebates and discounts for Protonix heartburn medication. In doing so, the suit alleges Wyeth avoided paying hundreds of millions of dollars to state Medicaid programs. Two years ago 16 other states filed a similar suit.

Wyeth is alleged to have offered hospitals the “Protonix Performance Agreement”, a bundled package of Protonix drugs at severely discounted prices. The package was an attempt to enter the retail outpatient market, making sure patients were prescribed Protonix IV so they would purchase Protonix Oral after being discharged. Earlier government estimates suggest that Pfizer’s liability could exceed $2 billion.