Philips reaches settlement related to CPAP recall Settlement must be approved by U.S. District Court for the Western District of Pennsylvania
By HME News Staff
Updated 8:53 AM CDT, Thu September 7, 2023
AMSTERDAM – Royal Philips has announced that the company and certain U.S. subsidiaries, including Philips Respironics, have reached an agreement to resolve all economic loss claims related to a voluntary recall of certain sleep and respiratory care devices.
The agreement, which is expected to be submitted to the U.S. District Court for the Western District of Pennsylvania later today and which is subject to that court’s approval, will provide predefined cash awards to all eligible participants in the U.S. depending on the type of device, extended warranties on all replacement devices, and an additional cash award if they return the recalled device to Philips Respironics. The settlement will further compensate certain individuals who acquired replacement devices post-recall.
Philips says the final cost of the settlement may vary based on, among other things, how many patients participate in the settlement and what the court awards for the professional fees relating to the resolutions. It recorded a provision of EUR 575 million in the first quarter of 2023 to cover the estimated costs of the final settlement.
Subject to final court approval, payments to class members under the settlement are not expected to begin until the first quarter of 2024, at the earliest.
Philips noted the agreement does not include or constitute any admission of liability, wrongdoing or fault. It also does not settle any personal injury or medical monitoring claims, which Philips has moved to dismiss.
For complete coverage of the recall, go here.
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