Sources have told The New York Times that the U. S. Justice Department and AstraZeneca have agreed to settle a case involving marketing of Seroquel for off-label uses.

The Justice Department planned to hold a news conference on Wednesday concerning the case, sources informed.

The Times said on Monday that the case involved marketing of the anti-psychotic drug for unapproved uses. The British pharmaceutical giant would be settled the case for $520 million.

Among the accusations, the AstraZeneca was accused of failing to disclose that Seroquel increased risk of diabetes.

It was also reported that the drug is approved for use in treatment of bipolar disorder and schizophrenia for patients over 13. Prescribing the drug for other uses is not permitted.

The Times also said that with a strong marketing campaign behind it, however, the drug, a blockbuster with $4.9 billion in sales in 2009, has been found increasingly prescribed for children and the elderly for unapproved uses.

According to the reports, company spokesman, Tony Jewell declined to comment. (With Inputs from Agencies)