Royal Philips and certain US subsidiaries, including Philips Respironics, have reached an agreement to resolve all economic loss claims in the US Multidistrict Litigation related to Philips Respironics’ voluntary recall of certain sleep and respiratory care devices.
The class action lawsuit alleged economic loss claims with respect to certain CPAPs, BiPAPs, and ventilators with PE-PUR foam that Philips Respironics recalled beginning in June 2021. The plaintiffs alleged that the particular type of noise-reducing foam used in the recalled devices was defective.
This settlement, which is expected to be submitted to the US District Court for the Western District of Pennsylvania later today, does not include or constitute any admission of liability, wrongdoing, or fault by any of the Philips parties, according to a release from the company.
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. Philips Respironics has recorded a provision for an amount of EUR 575 million in the first quarter of 2023 to cover the estimated costs of the final settlement.
Subject to final court approval, payments to class members under the settlement are not expected to begin until the first quarter of 2024 at the earliest.
The agreement does not settle any personal injury or medical monitoring claims in the US Multidistrict Litigation, 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.
All related inquiries by patients, hospitals, and sleep labs in the US should be directed to the third-party settlement administrator, Angeion Group. More information will be available at www.RespironicsCPAP-ELSettlement.com.
