NEW YORK — Shares of Liquidia surged Wednesday after the drugmaker agreed to pay United Therapeutics $380.7 million to settle a yearslong legal fight over its inhaled lung disease treatment, removing a major threat that had wiped out more than half of the company's market value just weeks ago.

Liquidia shares were up $7.07, or 26.4%, at $33.88 in late-morning trading on the Nasdaq. The stock had jumped as much as 44.3% to $38.68 in premarket trading, its highest level since May, before giving back some of those gains.

The shares closed Tuesday at $26.81, down 3.1%. Trading volume surged as investors reacted to the news.

Six lawsuits resolved

The settlement, announced after the market closed Tuesday, ends six lawsuits between the two companies involving patents, trade secrets, contracts and antitrust claims related to Yutrepia, Liquidia's inhaled dry-powder form of the drug treprostinil.

Under the agreement, Liquidia will continue selling Yutrepia to treat pulmonary arterial hypertension, or PAH, a rare and serious condition involving high blood pressure in the arteries of the lungs.

But Liquidia will stop promoting the drug for pulmonary hypertension associated with interstitial lung disease, known as PH-ILD. The company said it........

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