Philips on Monday said it will pay $1.1 billion to settle claims in the United States over allegations tied to faulty breathing machines.
Millions of Philips sleep apnea devices were recalled in 2021 over concerns that they carried a potential cancer risk, and the company has agreed to halt U.S. sales. The settlement includes a $1.075 billion personal injury settlement and $25 million for medical monitoring.
“Ultimately, these combined agreements accomplish what we sought to achieve when this litigation began — holding Philips accountable by obtaining care for those with physical injuries and compensation for those needing new respiratory devices,” plaintiffs’ lawyers said a statement.
The continuous positive airway pressure, or CPAP, machines are used to treat sleep apnea. Millions of Americans have the condition, which interferes with a person’s ability to breathe properly while sleeping.
The company’s stock soared on news of the settlement. Insurers had agreed to pay 540 million euros ― $570 million ― to help cover the claims.
“The remediation of the sleep therapy devices for patients is almost complete, and the test results to date show the use of these devices is not expected to result in appreciable harm to health,” CEO Roy Jakobs said in a statement.
“We do regret the concern that patients may have experienced,” Jakobs added.
This is a developing story and will be updated.
Source link: https://www.washingtonpost.com/business/2024/04/29/philips-cpap-machine-settlement/