The company’s decision was disclosed in its fourth-quarter financial results.
According to a filing with the US Securities and Exchange Commission, the drug maker illegally marketed several medicines and subsequently, caused investors to lose money.
The agreement, which is subject to New York federal court approval, has been revealed ahead of a jury trial set for 10 February 2015, according to Reuters.
Pfizer spokeswoman Christine Regan Lindenbloom was quoted by Reuters as saying: "This resolution reflects a desire by the company to avoid the distraction of continued litigation and focus on the needs of patients and physicians."
In 2010, a lawsuit was filed against Pfizer and various executives for giving false statements to shareholders regarding its off-label marketing of products such as Bextra.
Additionally, the US drugmaker was charged for making misleading statements about different government investigations of those practices, which resulted in a $2.3bn settlement with the US Justice Department in 2009.
Pfizer spokeswoman further noted that the firm continues to deny wrongdoing and that the disclosures to investors ‘were appropriate and prepared in good faith.’
Robbins Geller Rudman & Dowd law firm lawyer for the investors Michael Dowd declined to comment on the trial.