Philips Close to Sleep and Respiratory Devices Lawsuit Settlement of $616 Million

Royal Philips, Amsterdam-based parent company of Philips Respironics, reports that it’s close to settling multiple lawsuits related to Philips Respironics’ voluntary recall of certain sleep and respiratory care devices. Estimated amount: $616 million.

The company said on Thursday that it was planning to submit a settlement to the U.S. District Court for the Western District of Pennsylvania to resolve all economic loss claims in the U.S. Multidistrict Litigation (MDL) that resulted from the 2021 recall.

The final number may vary based on how many patients participate in the settlement and what the court awards for the professional fees, Philips said. But meantime, Philips Respironics has recorded a provision for an amount of $616 million — 575 million euros — in the first quarter of 2023 to cover the estimated costs of the final settlement.

Royal Philips said in a statement that it does not admit to any liability, wrongdoing or fault in the cases.

Philips has seen multiple recalls of its ventilators and CPAP machines since 2021 related to PE-PUR foam and repairs to that foam that created a new problem (FDAnews, Nov. 22, 2022).

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