Prognosis

CPAP Maker Agrees to Pay $479 Million to Settle Recall Claims

  • Deal doesn’t settle injury claims over recalled sleep machines
  • Stock down more than 50% since 2021 recall of devices
The Philips headquarters in Amsterdam.Photographer: Jasper Juinen/Bloomberg
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Koninklijke Philips NA has agreed to pay at least $479 million to resolve part of a sprawling litigation tied to a 2021 US recall of millions of machines designed to treat sleep apnea, according to lawyers for the plaintiffs.

Amsterdam-based Philips and its US unit agreed to settle a class-action lawsuit filed by device users who bought or rented one of the 16 lines of recalled machines, the attorneys said in a filing Thursday in the Pennsylvania federal court where the cases had been consolidated. The company confirmed a deal was reached, but didn’t say how much it would pay.