DANBURY, Conn. (AP) A Danbury dairy has agreed to pay tens of thousands of dollars to reimburse Connecticut school districts for milk-delivery contracts that a competitor said were unfairly inflated.

The Hearst Connecticut Media Group reports the state Department of Consumer Protection reached a deal with Marcus Dairy that includes no admission or allegation of overcharges. The company is giving $10,000 to the state and making payments to eight school systems.

Neil R. Marcus, president of the dairy based in Danbury, said Wednesday the payments represent the difference schools would have been charged under a different formula that is now prevalent in the industry.

The probe was prompted by a Hearst Connecticut Newspapers report last September on complaints by a Bridgeport dairy owner who accused Marcus of undercutting competitors in the bidding process, then charging districts more.