Philips pays $1.1 billion in U.S. settlement over ventilator recall

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Philips pays $1.1 billion in U.S. settlement over ventilator recall
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Two accused teenagers to remain in custody for at least two more weeks | SaltWire #newsupdate #newsAMSTERDAM - Dutch medical devices maker Philips said on Monday it had agreed to pay $1.1 billion in a settlement of personal injury cases in the United States related to the global recall of ventilators used to treat sleep apnea.

Philips said it did not admit any fault or liability, but the settlement would end uncertainty over the U.S. litigation.Amsterdam-based Philips has been grappling with the fallout of its recall of millions of breathing devices and ventilators for three years, as fears of large litigation bills lopped off about two-thirds of its market value.

The devices were recalled in April 2021 because of concerns that foam used in them could degrade and become toxic, carrying potential cancer risks. Philips said it had also reached agreement with insurers over compensation of 540 million euros for product liability costs, to be received in the second quarter of 2024.

It booked a provision of 982 million euros in first-quarter results for the settlement payments, which it expects to fund from cash flow next year.

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