2024-04-29 06:28:21
Philips announced on Monday April 29 that it had agreed to pay 1.1 billion dollars (932 million euros) to settle disputes in the United States, where the group is being sued after recalling defective respiratory devices for people suffering from sleep problems.
Philips’ announcement was welcomed by investors: on the Amsterdam Stock Exchange, the stock of the Dutch medical device manufacturer soared by more than 41%, to 27.92 euros, around 11:45 a.m. (Paris time). ).
The amount of 1.1 billion dollars is, according to a note from analysts from the American investment bank Jefferies, well below expectations and “will mark the end of litigation uncertainty”.
Read also: Defective Philips respirators: more than 200 people file complaints, including three for involuntary homicide
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Philips announced in 2021 the recall of these machines against sleep apnea, a case which led to the elimination of thousands of jobs.
Users risked inhaling or swallowing pieces of toxic sound-deadening foam that could cause irritation and headaches. The group then also mentioned a risk ” potential “ long-term cancers.
Payments expected in 2025
“The settlement addresses claims filed in U.S. courts and potential claims submitted to the Census Registry”the group said on Monday.
Payments are expected in 2025, Philips added.
Philips announced in January a net loss of 463 million euros in 2023 and the cessation of sales of respiratory devices in the United States. The group concluded an agreement in September with certain American subsidiaries to settle all claims for economic losses, but did not cover those concerning bodily injury or medical monitoring.
This is a “significant progress” in the matter, said Chairman and CEO Roy Jakobs. “That doesn’t mean everything is resolved.”he stressed, while other prosecutions and a criminal investigation led by the Ministry of Justice are still ongoing. “Overall, we view the long tail of remaining legal risks as very manageable”according to an analyst note from the Franco-German bank Oddo BHF.
Read also: Philips respirators: ANSM forces the group to accelerate the replacement of its defective devices
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