Takeda Pharmaceutical Company, the largest pharmaceutical company in Japan and Asia, announced on Wednesday that it will pay up to $2.4 billion to a number of patients and their families to settle claims over its diabetes drug Actos. According to the reports, the pharmaceutical company's Actos drug was linked to cancer.

The company headquartered in Osaka has faced product liability lawsuits in the United States, which involved approximately 9,000 patients who claimed that the company failed to inform them about the risks posed by the drug. Takeda said the settlement will resolve most of the claims though the company does not admit liability.

The settlement by the company will go into effect if 95% of the plaintiffs agree to the deal. In that case, Takeda will have to pay $2.37 billion. If the number of litigants rises to 97% or more, the company will pay $2.4 billion. The amount that will be paid by the company would be divided among the plaintiffs.

The pharmaceutical company said that the settlement is aimed at resolving the claims more quickly. In addition, it will also allow the company to move on, Takeda added. Takeda said that resolving the lawsuits will also allow it to focus on developing medicines.

In a statement, the company said, "Takeda's decision to settle does not change the company's continued commitment to Actos. The settlement will reduce financial uncertainties for the company and provides a significant degree of assurance toward resolving a high percentage of the Actos product liability claims".

Takeda, which has over 30,000 employees worldwide, said it would set aside about $2.7 billion against earnings in the first quarter of 2015 to cover the settlement and related costs. The claims could cause the company a group net loss of more than 140 billion yen for the business year ended March 31, according to the reports.