Philips, a medical device company, has agreed to a $1.1 billion settlement to cover personal injury lawsuits related to its respiration and sleep apnea machines. The company has recalled over 15 million breathing devices since 2021 due to health hazards caused by foam materials breaking down, leading to potential inhalation by users. The issues mainly affect the DreamStation CPAP machines used for sleep apnea and other breathing difficulties. Philips did not admit fault but settled to end uncertainty around litigation.
This settlement follows other financial hits to Philips including a $445 million settlement last year and a production halt in April. The company’s CEO emphasized patient safety and quality as top priorities and stated that the settlement provides clarity on the way forward. The settlement funds will go to users of the recalled devices who have suffered significant physical injuries.
The FDA warned about risks associated with the foam degradation, including headaches, asthma, allergic reactions, and even cancer. Additionally, Philips devices have been linked to over 500 reported deaths, with more than 116,000 complaints received. The company has denied any direct link between the machine defects and deaths but acknowledged potential health risks from particulate exposure.
Recalled Philips devices include various Bi-Level PAP, CPAP, and ventilator models manufactured between 2009 and April 2021. The company has also recalled modified products due to safety concerns. A consent decree stopped Philips from selling machines in the U.S., and the company has faced legal challenges in response to the recall. Further investigation is needed to evaluate the reported deaths and injuries related to Philips devices.
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