Philips has reached a $1.1 billion settlement in claims related to the sleep apnoea issue within its healthcare technology group. The funds are intended for American patients who allege they have suffered injuries from Philips’ sleep apnea devices. Additionally, the settlement is meant for Americans who haven’t experienced any health issues yet but fear potential future complications.
These claims involve individuals seeking compensation for personal injuries in the United States. They assert that they became ill due to the use of Philips’ sleep apnoea devices. Furthermore, some patients are demanding financial support for potential future health-related expenses.
Philips emphasizes that it does not admit any wrongdoing. The company denies that the medical problems are a direct result of using its sleep apnoea devices. Philips opted for this settlement to resolve all ambiguity surrounding the ongoing legal matters in the United States.
Financially, this settlement requires Philips to set aside 982 million euros this quarter, resulting in a loss of 998 million euros for the quarter. Since 2021, the company has had to recall millions of sleep apnoea machines due to concerns that insulation foam could degrade, posing potential harm to patients. This issue has already cost Philips hundreds of millions in compensation for the faulty devices.
Roy Jacobs, Philips’ director, emphasizes that patient safety and quality are now top priorities. He states, “We have taken significant steps to address the repercussions of the sleep apnoea issue.”
Despite these challenges, the healthcare technology company’s revenue growth has not been hindered. Turnover increased by 2.4 percent in the last quarter, although the number of orders decreased by almost 4 percent. According to the company, this decline was primarily due to reduced product shipments to China.
Last year, Philips reached a separate settlement in the United States related to economic damages claimed by customers dissatisfied with the performance of their purchased devices. In that instance, the company set aside 575 million euros.
