Wednesday, September 13, 2023

Philips Reaches Resolution of US Economic Loss Litigation for CPAPs


As many of you regular readers know, I treat a fair amount of OSA (Obstructive Sleep Apnea) in my practice.  I'm even such a big believer in what a good night's sleep can do for our health that I am now on the Board of Directors of the Foundation for Airway Helath.  So, as you can well imagine, I am also pretty in tune with the situation that has developed since 2021 over devices manufactured by Philips Respironics.  The company manufactures CPAP machines to help patients breathe easier while they sleep.  

It's now been announced that a class action lawsuit filed by patients has reached resolution.  Below is the information released by Philips.

Amsterdam, the Netherlands – 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.

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 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.

The agreement does not settle any personal injury or medical monitoring claims in the MDL, 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. 
      • The settlement must be approved by the US District Court for the Western District of Pennsylvania, and additional information will be provided in the future.
      • 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

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