Philips settled 1.1 billion dollars (1.03 billion euros) in damages claims on Monday in connection with the problems surrounding the company’s sleep apnea devices, Philips reports. The settlement is a response to personal injury claims from patients in the United States. Philips says it does not assume any liability or blame with the settlement. The company also signed a EUR 540 million agreement with insurers to compensate for recalls.
The healthcare technology group recalled millions of apnea devices worldwide three years ago. The foam in the fans to dampen the noise would deteriorate over time. Users reported black sludge in the device and investigation reports into the complaints reported “large chunks” in the air hoses and filters.
In June 2021, the company therefore recalled 15 million devices that may have caused patients “serious” or “life-threatening” injuries since 2009. More than thirty thousand people demanded compensation for health problems, two thousand cancer patients held Philips liable for their illness and 370 relatives of the deceased registered for compensation.
Since the recall, several personal and collective claims have been filed against the company worldwide. Earlier this month, the judge confirmed two other settlements from Philips: one of 479 million dollars (448 million euros) to compensate “economic losses” of affected patients in the US and one with the American regulator FDA of around 363 million euros. Philips is still under investigation by the US Department of Justice. Lawsuits are also underway in the Netherlands and France, among others. After the scandals emerged, the company’s stock market value fell by about two-thirds due to fears of large-scale lawsuits. In total, the affair cost Philips more than four billion euros, more than four times the profit from the peak year 2020, he calculated. The Financial Times out this month.
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Correction (April 29, 2024): An earlier version of this article stated that Philips reached a $479 million settlement in September 2021, which is incorrect and should be September 2023. The previous version also stated that Philips reached a settlement with the FDA later in 2021. That also concerned the autumn of 2023. Both settlements were ratified by the judge in April this year. That has been adjusted above.
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