The company paid £125m to settle about two thirds of seroquel personal injury claims in the US

Pharmaceutical company AstraZeneca agreed to pay around £125m to settle 17,500 US personal injury claims relating to its schizophrenia and bipolar disorder drug seroquel.

The group represents about two-thirds of outstanding claims that seroquel, also known as quietapin, caused conditions including diabetes after users gained significant amounts of weight, according to law firm Leigh Day.

The average amount of compensation per claim is reported to be $11,300.

Last month the Food and Drug Administration (FDA) contacted AstraZeneca warning it that information the company circulated to doctors about seroquel was “misleading” for overstating efficacy and omitting risks associated with the drug.

The company maintains that its labelling made clear any potential associations between seroquel and the disease.