A lawsuit filed by more than 100 people in Australia and New Zealand who suffered birth defects caused by the drug Thalidomide has been settled.

Lawyers of claimants have said that a British company Diageo, which did not distribute the drug but now owns the firm that did, agreed to pay $81m (£49m).

The drug, sold in the 1950s as a cure for morning sickness, was linked to birth defects and withdrawn in 1961.

The case is one of many lawsuits filed against the drug over the years.

Thalidomide was sold worldwide before it was pulled out after thousands of babies were born with deformities.

Lawyers representing the victims praised the company Diageo for agreeing to pay compensation as it has also done in the UK.

But there was anger towards the drug's German manufacturer Grunenthal, which was also being sued but refused to pay out as part of the settlement.

The settlement ends the case, which means the lawsuit against Grunenthal will be dropped, according to reports.

A spokesman for Diageo, Ian Wright, said he believed a fair settlement has been reached.

"We hope this settlement will bring some relief to the people who have been affected and we hope it will allow them to approach the rest of their lives with some degree of hope and more comfort," he added.

Thalidomide is still being used today to treat illnesses like leprosy and multiple myeloma.