Philips settles suits over its DreamStation sleep apnea machines for $1.1 billion
Source: CBS News/AFP
Updated on: April 29, 2024 / 5:54 AM EDT
Dutch medical device maker Philips said Monday it had reached a $1.1 billion deal in the United States to settle lawsuits over faulty sleep machines in a case that have dogged the company. The company's stock soared on news of the settlement, which was less onerous than feared by some shareholders.
Since 2021, Philips has been battling a series of crises over its DreamStation machines for sleep apnea, a disorder in which breathing stops and starts during sleep. Earlier this year, the company said it would halt new sales of the machines in the United States following a series of recalls of the devices made by subsidiary Philips Respironics.
Philips said in a statement Monday that it had reached an agreement with the plaintiffs "to resolve the personal injury litigation and the medical monitoring class action to end the uncertainty associated with litigation in the U.S.," adding that it didn't "admit any fault or liability, or that any injuries were caused by Respironics' devices."
The agreement addresses claims filed in U.S. courts and other potential cases, it said. Analysts at the Jefferies investment firm said in a note that the settlement was "much milder than feared and shall mark the end of litigation uncertainty".
Read more: https://www.cbsnews.com/news/philips-sleep-apnea-machines-settlement-dreamstation/
