British pharmaceutical company AstraZeneca (NYSE:AZN) agreed to a $198 million settlement related to U.S.-based product liability claims regarding its anti-psychotic drug Seroquel.
In a statement, AstraZeneca agreed to settle 17,500 product liability claims and did not expect the settlement to impact the company’s full-year guidance of $6.35-$6.65 in earnings per share.
AstraZeneca has faced numerous lawsuits and investigations regarding Seroquel, the drug maker’s second-best selling medication, on allegations the drug could cause the development of diabetes and it was improperly marketed to consumers.
This settlement was related to the diabetes claims and other injuries, alleging the drug maker did not adequately warn patients and doctors of the risks.
AstraZeneca recently settled a $520 million lawsuit with the Justice Department over allegations the drug maker promoted the use of Seroquel for off-label uses like as a sleep aid. The Food and Drug Administration approved Seroquel strictly as an anti-psychotic for the treatment of schizophrenia, bipolar disorder and depression.
Shares of AstraZeneca were up 0.7% to $52.67.