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Philips settles US ventilator recall litigation

Philips settles US ventilator recall litigation

Business news |
By Nick Flaherty



Royal Philips has settled litigation over the cost of its recall of ventilators in the US.

The agreement resolves all economic loss claims in the US Multidistrict Litigation (MDL) related to Philips Respironics’ voluntary recall of certain sleep and respiratory care and ventilator devices. The settlement, which is expected to be submitted to the US District Court for the Western District of Pennsylvania later today, can’t give a total cost as this will depend on how many people claim.

However the case has been a significant issue for recent Philips results. Philips Respironics has recorded a provision for an amount of €575m  in the first quarter of 2023 to cover for the estimated costs of the final settlement.

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.

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 CPAP, BiPAP and ventilator systems covered by the deal in the US are:

  • C-series S/T, AVAPS (C-series and C-series HT);
  • DreamStation ASV;
  • DreamStation BiPAP;
  • DreamStation CPAP;
  • DreamStation Go;
  • DreamStation ST, AVAPS;
  • E30 (above);
  • OmniLab Advanced Plus;
  • System One 50 Series ASV4 (Auto SV4);
  • System One 50 Series Base;
  • System One 50 Series BiPAP;
  • System One 60 Series ASV4 (Auto SV4);
  • System One 60 Series Base;
  • System One 60 Series BiPAP;
  • Trilogy 100/200, Garbin Plus, Aeris LiveVent; and
  • V30 auto

www.philips.com; www.RespironicsCPAP-ELSettlement.com

 

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