Philips reaches settlement with DOJ
By HME News Staff
Updated 9:30 AM CDT, Wed August 31, 2022
AMSTERDAM – Philips has agreed to pay about $4.2 million to settle an alleged violation of the military airworthiness recertification of one of its products. The settlement with the U.S. Department of Justice relates to the sale of certain portable patient monitors to the U.S. military, specifically the IntelliVue MP2 Mobile Patient Monitor, which has since been discontinued. After receiving initial airworthiness and safe-to-fly certifications for the MP2 from the U.S. Army in 2008 and the U.S. Air Force in 2011, Philips made modifications to the device. The DOJ alleged that sales during a period ending in 2018 resulted in false claims per the U.S. False Claims Act because Philips had not adequately notified the military certifying facilities of certain device redesigns that might have required renewed certification testing. In agreeing to the settlement, Philips acknowledges that it did not adequately notify the relevant military certifying facilities to determine whether the device modifications would or would not require retesting to maintain military airworthiness and safe-to-fly certifications. Philips has agreed to pay about $4.2 million. The company has already recorded a provision in connection with the settlement.
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