Philips settles $1.1 billion in claims related to the sleep apnea affair at the healthcare technology group. This concerns American claims about, among other things, personal injury resulting from Philips’ devices against sleep apnea.
Philips previously reached an agreement to compensate American patients for so-called economic damage due to problems with the devices. According to CEO Roy Jakobs, these are important agreements because they provide “further clarity about the way forward for Philips”.
The Dutch company got into trouble in 2021 due to a major recall for millions of sleep apnea devices for home use. Insulating foam could come loose from those devices. The issue has already cost Philips billions of euros if you add up all the repair costs, depreciation, settlements and other costs.
In the new deal, Philips does not admit any liability for any injuries caused by its devices. But previously, sales of the devices in the US were temporarily stopped after an agreement with the FDA. The company is also still under investigation by the US Department of Justice. This could easily result in a hefty fine, but no financial provision has yet been made for this.
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Tags: Philips settles billion claims sleep apnea affair Economy
