The company believes that the claims made in this litigation were without merit, and it did not admit liability.
Currently, the diabetes drug will be available as a treatment option in the US, Japan and other countries.
Pioglitazone has been approved for use in 95 countries, including the US, Japan, several in Europe, Australia, Brazil, Canada and Russia.
In a statement, the company said: "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."
The settlement will become effective if 95% of the plaintiffs agree to it, under which Takeda would pay $2.37bn and if that figure rises to 97% of plaintiffs, Takeda will pay $2.4bn.
The company said that current litigants and claimants who meet prescribed criteria would receive payouts from the fund.
Actos is a prescription medicine used with diet and exercise to improve blood sugar control in adults with type 2 diabetes.
The drug is not indicated to treat type 1 juvenile diabetes or diabetic ketoacidosis (increased ketones in blood or urine).
Image: Takeda Midosuji Building, the head office of Takeda Pharmaceutical Company, in Chuo-ku, Osaka, Japan. Photo: courtesy of J o.