The group decided to open their wallets. Philips said on Monday it had agreed to pay $1.1 billion to resolve disputes in the United States, where it faces lawsuits after being forced to recall faulty breathing machines for people with sleep problems.
The Dutch medical device maker announced in a statement that it had reached an agreement with the plaintiffs “to resolve the personal injury class action and medical oversight to end the uncertainty surrounding the state-United litigation.”
“Potential” cancer risk
In 2021, Philips announced a recall of DreamStation sleep apnea machines, resulting in thousands of job losses. Users risked inhaling or swallowing pieces of toxic noise-absorbing foam, which could cause irritation and headaches. The group then also mentioned the “potential” risk of developing cancer in the long term.
“The settlement addresses claims filed in U.S. courts and potential claims filed with the Census Register,” the group said. Under the terms of the settlement, Philips Respironics agreed to pay a total of $1.1 billion. Payments are expected in 2025, Philips said. According to him, a reserve of 982 million euros was provided for in the first quarter of 2024.
Philips announced in January a net loss of 463 million euros in 2023 and the end of sales of respiratory devices for the treatment of sleep apnea in the United States. In September, the group reached an agreement with certain US subsidiaries to settle all economic loss claims, but does not cover claims relating to personal injury or medical supervision.
Source: Le Parisien
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