Philips Reaches $1.1B U.S. Settlement Over Recalled Respiratory Devices

Philips and plaintiffs’ leadership reached a deal after mediation with Judge Diane M. Welsh to resolve personal injury litigation and the medical monitoring class action related to U.S. litigation concerning recalled U.S. respiratory devices.
 
The settlement addresses about 58,000 claims filed in U.S. courts and potential claims submitted to the census registry. Philips Respironics agreed to pay $1.1 billion, with related payments expected in 2025.
 
Eligible individuals will have six months from the settlement date to sign up for the settlement. The amount is capped regardless of the number of participants—plaintiffs’ leadership committed to having an at least 95% participation rate among eligible participants.
 
Earlier this month, Philips signed a consent decree and got final court approval for the previously announced economic loss settlement in the U.S. The decree affects business operations in the U.S. including facilities in Murrysville, New Kensington, Mount Pleasant and Pittsburgh in Pennsylvania.
 
The decree restricted production and sale of new CPAP, BiPAP, and other devices in the U.S. until certain requirements are met. Philips Respironics was permitted to provide new sleep and respiratory care devices outside the U.S.
 
The company also finished an agreement with insurers to pay Philips €540 million to cover Respironics recall-related product liability claims. Philips and Philips Respironics didn’t admit fault, liability, or that any injuries resulted from the recalled devices.
 
“Patient safety and quality is our highest priority, and we have taken important steps in further resolving the consequences of the Respironics recall,” Philips CEO Roy Jakobs said in a press release. “The remediation of the sleep therapy devices for patients is almost complete, and the test results to date show the use of these devices is not expected to result in appreciable harm to health. We do regret the concern that patients may have experienced.
 
“The approved consent decree and economic loss settlement, and now the resolution of the personal injury and medical monitoring litigation in the US, are significant milestones and provide further clarity on the way forward for Philips,” continued Jakobs.
 
The Philips Respironics sleep and respiratory device recall was first announced in June 2021. More information on the litigation can be found here.