NOS News•today, 07:38
Philips has settled in the United States for $1.1 billion over problems with sleep apnea devices. The company reports this when announcing its first quarter results.
These are patients who had claimed compensation for personal injury in the United States. Those patients say they have become ill from using the sleep apnea devices. In addition, it concerns patients who demand money for medical checks for possible future health problems.
Philips emphasizes that it does not admit any guilt in this regard. The company does not admit that the medical problems are a result of the use of the sleep apnea devices. Philips opted for this settlement to put an end to all uncertainty surrounding the consequences of ongoing legal cases in the United States.
Chairman Roy Jakobs calls the settlement a significant milestone. Investors also responded positively to the news: the share rose by 33 percent on the stock exchange on Monday morning.
Loss
The settlement means for the company’s finances that they had to set aside 982 million euros this quarter. As a result, Philips will make a bottom line loss of 998 million euros this quarter. The actual payment of the settlement will follow in 2025.
The company also announced an agreement with insurers. They will pay out 540 million euros to Philips for liability claims.
In June 2021, Philips recalled sleep apnea devices due to potential health risks. Foam particles in the devices could become loose and patients could inhale them.
Last year, Philips reached a settlement in the United States, but it concerned economic damages that customers claimed because the device they had purchased did not meet their requirements. The company set aside 575 million euros for this purpose.
NOS previously visited Hans, who sleeps with a Philips apnea device:
Hans sleeps with an apnea device from Philips: ‘It’s a choice between two evils’
