Philips settles CPAP machine lawsuits for $1.1 billion; no admission of fault or liability.
The Dutch firm Philips doesn’t accept blame or responsibility in the case, but they've committed to compensating individuals in the US who brought court action against the company, claiming they experienced damages on account of their faulty equipment. Following the announcement of this settlement along with the unveiling of its Q1 financials, Philips' stocks saw a rapid surge in value.
These gadgets are utilized by individuals with sleep apnea to help maintain regular breathing patterns while asleep. Without these devices, sleep apnea can induce brief interruptions in breathing during the night, which might occur multiple times in a single hour. This ailment can hinder people from feeling fully rested during regular wake-up cycles. It also intensifies risks of acquiring serious health issues such as heart disease, heart failure, and stroke. According to the World Health Organization, approximately 100 million individuals globally endure this disorder.
The source of the problem was the polyurethane-based foam utilized in the device, which allowed for reduced sound levels and vibration. The foam may degrade, enabling individuals to inhale its fragments or certain chemicals released through decomposition. The FDA mentioned that they'd received prior complaints concerning the issue and investigated each instance individually. The global recall of over 15 million machines, deemed as a "cautious" measure, took place.
Users of these machines have reported various injuries to the FDA, including pneumonia, asthma, infection, nodules, chest pain, and cancer. The FDA recorded 116,000 medical device reports, including 561 reported deaths linked to the failure of the foam since April 2021.
In October 2023, Philips Respironics accepted the FDA's proposal for additional device testing.
In a news release on the company's official website, the Royal Philips CEO, Roy Jakobs, commented on the settlement during their earnings call.
"Patient safety and quality are our highest priorities; we've taken significant measures to address the aftermath of the Respironics recall. The remediation of the sleep therapy devices is almost completed, and test results indicate that these devices won't cause severe health consequences. However, we understand the concerns of those who might have been affected," Jakobs said.
Between 2008 and 2021, the affected devices were marketed in the US under the Philips Respironics brand. So far, the company has resolved 99% of the problematic sleep therapy device registrations. A comprehensive list is accessible on their official website. An estimated 58,000 individuals have filed claims or registration for this settlement.
Currently, Philips is forbidden from selling their sleep therapy devices in the US until they adhere to the conditions of a consent decree with the government. The company will continue to service devices actively used in the US and supply replacement parts.
Plaintiffs' counsel expressed satisfaction with the recent development, stating:
"The tentative agreements with Philips will provide remedies to those users of the recalled sleep apnea devices who have suffered significant physical injuries and are in dire need of new respiratory equipment. Additionally, this paves the way for substantial research into the treatment of these injuries. The combined agreements will achieve what we initially set out to accomplish: holding Philips accountable by delivering health care for those in need and economically settling those who require new respiratory devices."
The aforementioned settlement is not yet conclusive. It resulted from a mediation presided over by Judge Diane M. Welsh. The proposed arrangement must be filed in a federal court. People affected by this issue can anticipate recompense from Philips in 2025.
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Source: edition.cnn.com
