Philips reaches $1.1 billion settlement for CPAP machine lawsuits, admits no fault or liability

Philips has agreed to a $1.1 billion settlement regarding its CPAP, ventilator, and BiPAP machines, which were recalled in 2021 due to potential health risks from disintegrating foam. The company, however, does not admit to any fault or liability. This settlement aims to compensate U.S. plaintiffs who claimed injuries from these devices. Philips' stocks increased following the announcement, which coincided with their first-quarter financial results.

The devices, crucial for individuals with obstructive sleep apnea, were found to have issues with foam that could degrade and potentially release harmful particles and chemicals. Despite Philips' claims of no significant health risks from continued device usage, over 116,000 medical device reports have been filed, including 561 deaths linked to the foam breakdown. Philips is currently barred from selling these devices in the U.S. until further compliance with a government consent decree.