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Pfizer Inc. said it reached a settlement agreement in a wrongful-death lawsuit brought by a woman who claimed her husband’s use of the antiseizure drug Neurontin caused him to commit suicide in 2002.

The proposed settlement is “on favorable terms,” the New York drug maker said in a written statement on Monday. “While Pfizer maintains that it has strong defenses to each of plaintiff’s claims, and has great confidence in the jury and the court, Pfizer agreed to settle the case for less than its defense costs remaining in this case.”

Pfizer and a plaintiff’s attorney said the settlement terms are confidential. People familiar with the settlement indicated Pfizer would pay less than $400,000 to settle the suit.

The suit was brought by Linda Shearer of Berkshire County, Mass., whose husband, Hartley Shearer, was prescribed Neurontin to control the effects of his paralysis. The suit alleged Pfizer promoted this use of the drug even though it wasn’t approved by U.S. regulators. The suit alleged Pfizer knew the drug was associated with a risk of suicide, but failed to properly warn of the risk.

A trial in the case began last week in federal court in Boston, but the parties reached a settlement before it ended. The deal is subject to approval by the court.

The settlement is the latest development in years-long legal entanglements stemming from Pfizer’s marketing of Neurontin. Nearly two weeks ago, a federal jury concluded Pfizer violated an antiracketeering law by promoting Neurontin for off-label uses, and awarded damages of $47 million, which is to be automatically tripled under the law; Pfizer said it will pursue post-trial motions and an appeal.

In 2004, Pfizer pleaded guilty to a criminal charge and agreed to pay $430 million to settle government investigations of its promotion of Neurontin.

Pfizer has said that it faces a number of lawsuits alleging use of Neurontin caused suicide, attempted suicide and other personal injuries.

Neurontin was previously one of Pfizer’s best-selling drugs, generating $2.7 billion in sales in 2003, but has since lost patent protection and became exposed to generic competition.