The average refund for each of the senior citizens will be about $500, the lawyers estimate.

Rick Eichor, one of the attorneys, said the agreement reflects increased awareness of the problems facing senior citizens. "We think that the settlement is an important development in protecting seniors in Hawai'i," he said.

The settlement, which must be approved by the state court, would end a lawsuit charging that PharMerica Inc.'s Interstate Pharmacy Corp., sold to the senior citizens medication from 1990 to 2000 that had been previously sold and returned to the company. The medication was sold through nursing homes.

PharMerica Inc., a subsidiary of AmerisourceBergen Corp., issued a statement confirming the tentative settlement and the dollar amounts, but said there were no allegations that any of the residents had been harmed.

PharMerica's statement said the law changed last year to permit the sale of "returned medications," but the residents' lawyers said it must be under strict conditions that include documenting who previously possessed the drugs and that drugs had not been altered.

According to the suit, the pharmacy sold drugs that previously had been sold to nursing homes, but returned for various reasons, such as the resident's death or transfer or no need for the medication anymore.

The suit said the practice was deceptive since the residents who later purchased the drugs weren't notified that the medication had been sold before.

The drugs covered a wide range from aspirin to anticancer to blood pressure medication, the lawyers said.

Senior citizens who purchased the drugs from 1997 to 2000 will be notified on how to file the claims.

Thomas Grande, who also represented the residents, said the company records' prior to 1997 are sketchy, and many seniors who purchased the drugs before then may have died. As a result, the money for their claims will be given to the University of Hawai'i to help senior citizens, he said.

But residents who can show they purchased the medication prior to 1997 will each be entitled to $100, the lawyers said.

Walter Kirimitsu, UH's vice president for legal affairs and general counsel, said the university is grateful to Eichor and Grande as well as their clients. He said the UH's medical, law and nursing schools all have programs benefiting senior citizens.

If the refunds do not total $2 million, the difference will be given to UH.