Philips to pay $1.1 billion to US plaintiffs over defective respiratory devices

(AFP) Philips announced on Monday that it agreed to pay $1.1 billion to settle litigation in the United States, where it faces lawsuits after being forced to recall defective respiratory devices for people with sleep problems.

The Dutch group said in a statement that it reached an agreement with the plaintiffs to "resolve the personal injury litigation and the medical monitoring class action to end the uncertainty associated with litigation in the U.S."

Philips had announced a recall of its DreamStation machines for sleep apnea in 2021.

Users ran the risk of inhaling or swallowing pieces of toxic soundproofing foam that can cause irritation and headaches. At the time, the group also alluded to a "potential" long-term risk of cancer.

"The settlement covers claims filed in U.S. courts and potential claims filed with the Census Bureau," the company stated.

Under the terms of the agreement, payment will be made in 2025, Philips said.

Philips announced in January a net loss of $496 million in 2023 and the discontinuation of U.S. sales of breathing devices for sleep apnea.

The group reached a settlement in September with some U.S. affiliates to resolve claims for economic losses, but had not resolved claims for personal injury or medical follow-ups.