Philips Posts Record Surge After US Sleep Apnea Settlement

Company reaches deal for costly sleep apnea device recall
Philips settles personal injury and medical monitoring claims

WATCH: Jakobs says Philips’ €982 million settlement resolves US claims over the faulty sleep therapy devices, “even the ones that would come in still over the next six months.Source: Bloomberg

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By Cagan Koc

April 29, 2024 at 5:10 AM UTC

Updated on

April 29, 2024 at 10:46 AM UTC

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Royal Philips NV shares soared by a record after a lower-than-expected settlement on US claims linked to faulty sleep apnea devices, stoking hopes the manufacturer has moved past concerns that have dogged it for the past three years.

The stock surged as much as 47% in Amsterdam following the statement, adding nearly $9 billion to the medical equipment maker’s market value in a single day. Philips’ market valuation still remains 35% lower than before the start of the issues, which have seen the company swap out its chief executive officer and cut 10,000 positions to save costs.