Mickey Fine Pharmacy had filed a lawsuit in Santa Monica Superior Court, alleging breach of oral contract, saying Jackson had failed to pay for prescription drugs supplied to him since December 2005.
However a spokesman for Jackson said in a statement the bill had now been paid. "The issue has been amicably resolved," the statement said. "Mikey Fine Pharmacy has been paid."
The statement said the dispute was related to a separate legal action Jackson is waging against his former accountants.
In court documents filed last month Jackson alleged the company of Bernstein, Fox, Whitman, Goldman and Sloan, had mismanaged his financial affairs.
Jackson is struggling to rebuild his career since his acquittal on child molestation charges last year.