Home Breaking News Philips to Pay $1.1 Billion in Settlement Over Recalled Breathing Device

Philips to Pay $1.1 Billion in Settlement Over Recalled Breathing Device

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Photo by Andrea Ellen Reed (The New York Times)

In a significant development, Philips, the Dutch multinational corporation, has agreed to a $1.1 billion settlement over its continuous positive airway pressure (CPAP) machines and other breathing devices. This settlement comes after claims that the devices posed potential health risks due to a foam component that could degrade and become toxic.

The company recalled millions of these devices in 2021 after it was found that the polyester-based polyurethane (PE-PUR) sound abatement foam used in them could degrade into particles that users might inhale or ingest. Potential risks identified included carcinogenic effects and chemical exposure.

This settlement is a pivotal step in our journey to ensure that all affected patients are adequately compensated and can replace their current devices with safe alternatives,

said Frans van Houten, CEO of Philips.

We have learned significant lessons and are initiating rigorous internal changes to prevent recurrence.

Under the settlement terms, Philips will compensate those who have used these devices and faced health issues potentially linked to the exposure of degraded foam. The specifics of the claims process and eligibility criteria for compensation are yet to be detailed. Still, Philips has indicated that it will include provisions for past and future medical expenses related to the issue.

The legal proceedings accelerated after numerous lawsuits were consolidated into a multi-district litigation (MDL), streamlining the process and facilitating collective negotiation. The $1.1 billion fund will cover all outstanding and future claims.

Legal experts have pointed out that the settlement, while substantial, is a strategic move for Philips to regain consumer trust and stabilize its market position.

It’s a clear demonstration of Philips’ commitment to addressing the concerns of its consumers and moving forward from this challenging chapter,

commented a legal analyst who specializes in corporate lawsuits.

Healthcare providers and patients affected by the recall have been advised to consult with their healthcare professionals and follow Philips’ guidance on device replacement and repair. Philips has also established a dedicated website and helpline to assist customers with their queries and to facilitate the transition to safer alternatives.

As Philips navigates the aftermath of this settlement, the broader implications for the medical device industry are likely to trigger increased regulatory scrutiny and possibly new standards for material safety in medical devices to prevent similar issues.

Source: The New York Times April 30, 2024

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