Philips settles one category of U.S. claims over respirator recall
Reuters
Published Sep 07, 2023 08:18AM ET
Updated Sep 07, 2023 10:36AM ET
AMSTERDAM (Reuters) -Philips said on Thursday it has reached a settlement to resolve one category of legal claims against it following a major recall of the Dutch medical equipment maker's sleep apnea and respiratory devices.
The company said it has struck a deal to settle U.S. class action "economic loss" claims. Philips (AS:PHG) will make an initial payment of $479 million to a fund to cover payments claimants covered by the settlement, which will vary depending on the type of device they had.
The company had taken a 575 million euro ($615.48 million) provision in the first quarter of 2023 against estimated costs for economic loss claims.
"The final costs may vary based on how many patients participate but at the end of the day we believe the 570 million euros will cover the costs of the final settlement," spokesman Steve Klink said.
Philips recalled millions of breathing devices and ventilators used to treat sleep apnea in 2021 because foam used to dampen noise from the devices can degrade and become toxic, carrying potential cancer risks.
The company still faces other legal actions over the recall, including personal injury claims, as well as an investigation by the U.S. Department of Justice. It is in talks with the U.S. Food and Drugs Administration over a "consent decree" or settlement.
Lawyers from four firms who led the class action suit said the settlement was "an important step toward justice" and participants should take the agreement.
However, the lawyers said in a joint statement they would continue to pursue personal injury and other claims against the company.
"We are confident in these claims and we look forward to holding Philips accountable for the physical harm they caused patients," they said.
($1 = 0.9342 euros)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.