“Ultimately, these combined agreements accomplish what we sought to achieve when this litigation began — holding Philips accountable by obtaining care for those with physical injuries and compensation for those needing new respiratory devices,” plaintiffs’ lawyers said a statement.
The continuous positive airway pressure, or CPAP, machines are used to treat sleep apnea. Millions of Americans have the condition, which interferes with a person’s ability to breathe properly while sleeping.
The company’s stock soared on news of the settlement. Insurers had agreed to pay 540 million euros ― $570 million ― to help cover the claims.
“The remediation of the sleep therapy devices for patients is almost complete, and the test results to date show the use of these devices is not expected to result in appreciable harm to health,” CEO Roy Jakobs said in a statement.
“We do regret the concern that patients may have experienced,” Jakobs added.
This is a developing story and will be updated.