Official Philips press releases, FDA announcements

Philips Settles US Sleep Apnea Lawsuits for $1.1B; Stock Surges, Valuation Hits $28.9B

Apr 29, 2024, 07:05 AM

Philips, the Dutch medical device maker, has agreed to pay $1.1 billion to settle personal injury lawsuits in the United States related to its defective sleep apnea machines. The settlement resolves claims arising from a global recall of millions of the ventilators, which were found to expel debris and potentially cause cancer due to degraded foam. The resolution was significantly lower than the market's expectation, leading to a substantial increase in Philips' stock price, which soared up to 43%, resulting in a valuation of $28.9 billion.