Royal Philips (NYSE:PHG, AEX: PHIA))))) announced today that the company and certain of its US subsidiaries, including Philips Respironics, have reached an agreement to resolve all economic loss claims in the US Multidistrict Litigation (MDL) related to Philips Respironics’ voluntary recall of certain sleep and respiratory care devices. 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.
Philips Respironics has recorded a provision for an amount of EUR 575 million in the first quarter of 2023 to cover for 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.
