The company has been grappling with problems since 2021 due to defects in DreamStation devices used to treat sleep apnea, a breathing disorder during sleep. Philips discontinued sales of these devices in the US in early 2024 after a recall by its subsidiary Philips Respironics.
Philips said it reached a settlement with the plaintiffs to end uncertainty surrounding the U.S. case. However, the company denies any wrongdoing and does not acknowledge that its devices caused any harm.
Funds for payments will be allocated from the company’s cash flow in 2025. Philips also signed a 540 million euro agreement with insurance companies to cover the costs of recalling the devices.
Philips closed 2023 with a loss of 463 million euros due to financial losses resulting from problems with its sleep aids. The company had to lay off thousands of people
Source: Ferra
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