Philips To Pay $1.1 Billion To Settle US Lawsuits Over Breathing Machines

(CTN News) – There have been thousands of lawsuits in the U.S. filed against Philips over its defective sleep apnea machines, which have been the subject of massive recalls around the world over their defective performance. Philips said Monday it would pay $1.1 billion to resolve those lawsuits.

Despite the fact that the Dutch manufacturer denied any fault, it said the agreement had been reached as a result of any uncertainty regarding the cases. There are also a number of claims within the payout that have been made by patients who used the company’s medical monitoring devices and could have been exposed to future risks in the future.

Since 2021, Philips has started recalling more than 5 million of its breathing machines due to the fact that their internal foam can break down over time, causing users to inhale tiny particle and fumes while they sleep as a result. Regulators and patients in other countries have been frustrated by delays in efforts to repair or replace the machines that have plagued efforts to repair or replace them.

In the midst of a major recall of medical devices that has been dragging on for nearly three years, Monday’s announcement is another step towards resolving one of the biggest recalls in the industry’s history.

In response to the news, Philips’ shares jumped more than 35% to a one-year high.

There has recently been a settlement reached between the company and the U.S. government that will require the company to overhaul the way it manufactures the sleep apnea devices that it manufactures. In addition, as part of the agreement, the company is required to replace the recalled machines for patients or to reimburse them for them.

In most cases, the devices that have been recalled are the continuous positive airway pressure devices, or CPAP machines. In order to keep the passageway of the mouth and nasal cavity open while sleeping, these people use a mask that forces air through it.

The company’s CEO Roy Jakobs said in a statement that the settlements reached as part of this recent settlement are “significant milestones and provide further clarity on Philips’ way forward.”

In a warning posted on the FDA’s website, the agency warns patients that ingesting sound-dampening foam may cause headaches, asthma attacks, allergic reactions, and other problems, including more serious complications.

There was a spate of red flags found by the FDA during an audit of Philips’ Pennsylvania offices in the fall of 2021, including emails suggesting that the company had been warned of the problem with the foam six years before it was recalled.

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