Philips, a maker of medical devices, said on MondayLoveyourbingo1.1 billion dollars will be paid to resolve hundreds of personal injury lawsuits in the United States over its defective sleep apnea device, which has been recalled on a global scale.

The Dutch manufacturer denied any wrongdoing and said it had reached an agreement to resolve any uncertainty faced in the case. The payment also includes claims for medical monitoring from patients using the company's equipment, who may be at risk in the future.

Since 2021, Philips has recalled more than 5 million ventilators because their internal bubbles break down over time, causing users to inhale tiny particles and smoke while sleeping. Efforts to repair or replace machines have been plagued by delays, frustrating regulators and patients in the United States and other countries.

Monday's announcement is another step in resolving the largest medical device recall in the industry's history, which has dragged on for nearly three years.

Philips shares rose more than 35 per cent to an one-year high on the news.

Earlier this month, the company reached a settlement with the US government that calls for an overhaul of the way it makes sleep apnea devices. The agreement also requires the company to replace or compensate patients with recalled machines.

Most of the recalled devices were continuous positive airway pressure (CPAP) devices. They force air through masks to keep the oral and nasal passages open during sleep.

Roy Jacobs, the company's chief executive, said in a statement that the recent settlement was "an important milestone that defines Philips's next step forward."

The FDA website warns patients that eating anechoic foam can lead to headaches, asthma, allergic reactions and more serious problems.

During an inspection of Philips's Pennsylvania offices in the fall of 2021, FDA found a series of red flags, including emails showing that the company had been warned of bubble problems six years before the recall.