Dutch medical products maker Philips says it has reached a $1.1bn (£877m) deal to settle lawsuits in the US relating to potentially faulty breathing devices.

The settlement is expected to go some way towards drawing a line under a controversial and deeply damaging episode for the company, which has hurt its finances and its reputation.

In 2021, it emerged that foam fitted in breathing machines used to treat sleep apnoea and other disorders could degrade, releasing potentially toxic particles into masks worn by patients.

Philips said it did not “admit any fault or liability, or that any injuries were caused" by the devices.

The settlement was much lower than many analysts had expected, and the company’s share price rose more than 40% after the announcement.