Philips, a Dutch medical device maker announced Monday that it has struck a $1.1 billion settlement in the United States to settle lawsuits over faulty sleep devices in a case that has rocked the company.
Since 2021, the firm has faced s succession of problems with its DreamStation machines for sleep apnoea, a condition in which breathing stops and resumes during sleep.
Following a series of recalls of equipment manufactured by subsidiary Philips Respironics, the company announced earlier this year that new sales of the machines in the United States would be halted.
In a statement, Philips stated that it had reached an agreement with the plaintiffs to resolve the personal injury litigation and the medical monitoring class action to end the uncertainty associated with litigation in the US.
It went on to say that it did not admit any fault or liability, or that any injuries were caused by Respironics’ devices.
“The settlement addresses claims filed in US courts and other potential cases”, Philips added.
“The related payments are expected in 2025 and will be funded from Philips’ cash flow generation”, the statement reads.
“The company had booked a provision of 982 million euros ($1.05 billion) in the first quarter to cover the settlement”, the statement continued.
Philips also announced that it has reached an agreement with insurers to pay them 540 million euros to settle Respironics recall-related claims.
Philips reported losses of 463 million euros ($501 million) for the fiscal year 2023.
The corporation has had to shed thousands of positions.
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