Philips reaches resolution of US economic loss litigation
07 September 2023 - 9:57PM
Philips reaches resolution of US economic loss litigation
September 7, 2023
Amsterdam, the Netherlands – Royal Philips
(NYSE: PHG, AEX: PHIA) announced today that the company and certain
of its US subsidiaries, including Philips Respironics, have reached
an agreement to resolve all economic loss claims in the US
Multidistrict Litigation (MDL) related to Philips Respironics’
voluntary recall of certain sleep and respiratory care devices.
This settlement, which is expected to be submitted to the US
District Court for the Western District of Pennsylvania later
today, does not include or constitute any admission of liability,
wrongdoing, or fault by any of the Philips parties.
The agreement, which is subject to approval by the court, will
provide predefined cash awards to all eligible participants in the
US depending on the type of device, extended warranties on all
replacement devices, and an additional cash award if they return
the recalled device to Philips Respironics. The settlement will
further compensate certain individuals who acquired replacement
devices post-recall.
The final cost of the settlement may vary based on, among other
things, how many patients participate in the settlement and what
the Court awards for the professional fees relating to the
resolutions. Philips Respironics has recorded a provision for an
amount of EUR 575 million in the first quarter of 2023 to cover for
the estimated costs of the final settlement.
Subject to final Court approval, payments to class members under
the settlement are not expected to begin until the first quarter of
2024 at the earliest.
The agreement does not settle any personal injury or medical
monitoring claims in the MDL, which the Philips parties have moved
to dismiss.
• Patients, hospitals, and sleep labs in the US eligible
for benefits under the agreement do not need to take any action at
this time in order to participate in the settlement.
• The settlement must be approved by the US District
Court for the Western District of Pennsylvania, and additional
information will be provided in the future.
• All related inquiries by patients, hospitals and sleep
labs in the US should be directed to the third-party Settlement
Administrator, Angeion Group. More information will be available at
www.RespironicsCPAP-ELSettlement.com.
For media and investor relations questions,
please contact:
Philips Global Press Office (Europe time zone)Ben ZwirsTel.: +31
6 15213446E-mail: ben.zwirs@philips.com
Philips Global Press Office (US time zone)Mario FanteTel.: +1
603 560 9226E-mail: mario.fante@philips.com
Philips Investor RelationsDerya GuzelTel: +31 20 59 77055E-mail:
derya.guzel@philips.com
About Royal PhilipsRoyal Philips (NYSE: PHG,
AEX: PHIA) is a leading health technology company focused on
improving people's health and well-being through meaningful
innovation. Philips’ patient- and people-centric innovation
leverages advanced technology and deep clinical and consumer
insights to deliver personal health solutions for consumers and
professional health solutions for healthcare providers and their
patients in the hospital and the home. Headquartered in the
Netherlands, the company is a leader in diagnostic imaging,
ultrasound, image-guided therapy, monitoring and enterprise
informatics, as well as in personal health. Philips generated 2022
sales of EUR 17.8 billion and employs approximately 71,500
employees with sales and services in more than 100 countries. News
about Philips can be found at www.philips.com/newscenter.
Forward-looking statements This release
contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips
and certain of the plans and objectives of Philips with respect to
these items. Examples of forward-looking statements include
statements made about the strategy, estimates of sales growth,
future EBITA, future developments in Philips’ organic business and
the completion of acquisitions and divestments. By their nature,
these statements involve risk and uncertainty because they relate
to future events and circumstances and there are many factors that
could cause actual results and developments to differ materially
from those expressed or implied by these statements.
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