Philips, a medical device maker, has agreed to a $1.1 billion settlement to resolve claims from individuals who allege they were harmed by their CPAP and ventilator machines. These devices, sold under the Philips Respironics brand in the U.S. from 2008 to 2021, are part of a Class I recall affecting about 15 million units globally. The recall was issued due to a defect in insulating foam that could potentially lead to serious health issues or death.
Millions of CPAP sleep apnea machines made by the medical device maker Philips and a subsidiary were found to have a dangerous problem, triggering consumer lawsuits and a massive recall in 2021. The FDA has reported over 116,000 Medical Device Reports, including 561 deaths, possibly linked to this issue since April 2021. Despite the settlement, Philips does not acknowledge any wrongdoing or liability for injuries related to the devices.
The settlement, mediated by retired judge Diane M. Welsh, includes $25 million for medical monitoring and awaits final approval from a federal court in Pennsylvania. Philips’ announcement coincided with a surge in its stock price and a statement from CEO Roy Jakobs expressing regret for any concern caused to patients.
The funds are designated for individuals with significant injuries from the recalled devices and for research into treating these injuries. Approximately 58,000 claims have been filed or registered for the settlement, with payments expected to be made in 2025.
Additionally, Philips recently settled a class-action lawsuit for economic damages related to the recall, valued at a minimum of $613.3 million, which includes reimbursements for users and insurance companies. This settlement was approved by U.S. district judge Joy Flowers Conti and is expected to be paid out this year.
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