Philips Respironics Reaches Personal Injury Settlement

On May 9, 2024, Philips Respironics, a subsidiary of Royal Philips, reached a USD 1.075 billion settlement agreement to resolve eligible personal injury claims in the United States associated with certain recalled sleep apnea and respiratory care devices. The agreement followed the voluntary recall initiated in June 2021 involving specific continuous positive airway pressure (CPAP) machines, bilevel ventilation devices, and mechanical ventilators. The settlement allocated USD 1.05 billion to a personal injury compensation fund and USD 25 million to notification and administrative expenses. Eligible claimants could participate voluntarily in exchange for resolving their covered claims. Importantly, the agreement did not constitute an admission of liability, wrongdoing, or that the devices had caused the alleged injuries. The settlement represented an important milestone in Philips' efforts to address recall-related legal proceedings and strengthen its commitment to patient safety, product quality, and regulatory compliance. Under the leadership of Chief Executive Officer Roy Jakobs, Philips continued implementing improvements in quality management, manufacturing processes, and medical device testing while supporting affected patients and healthcare providers. The agreement provided a structured process for resolving eligible claims and helped reduce uncertainty surrounding the company's U.S. litigation. The settlement became final after registrations exceeded the required 95% participation threshold by January 31, 2025, with payments taking place during the first half of 2025. This development formed part of Philips' broader strategy to reinforce operational performance, rebuild stakeholder confidence, and maintain its focus on healthcare innovation and reliable medical technologies.