Philips Sets Aside $630 Million for CPAP Class Action Lawsuits

Philips Sets Aside $630 Million for CPAP Class Action Lawsuits

Philips Respironics, the troubled CPAP maker, has recently made headlines with its first-quarter earnings report. The report revealed a net loss of nearly $774 million, attributed in part to the 2021 recall of 5.5 million Philips CPAP machines in the United States. Among the noteworthy revelations is the decision to set aside a substantial sum of $630 million to settle economic loss CPAP class action lawsuits against the company.  

Philips Recall Triggers Lawsuits and Financial Woes 

The massive recall of 5.5 million sleep apnea machines in September 2021 has shaped the trajectory of Philips Respironics. The discovery of toxic particles and gases in CPAP, BiPAP, and ventilator devices triggered the recall. Philips equipped these machines with polyester-based polyurethane (PE-PUR) foam to reduce the noise when patients use them. However, this foam could disintegrate, resulting in patients inhaling or ingesting carcinogenic particles. These contaminants reportedly pose a grave risk to users, leading to a wave of lawsuits. These lawsuits allege individuals have developed cancer, respiratory problems, and organ damage.  

As of June 2023, 548 CPAP lawsuits were pending in federal court. With more personal injury cases added to the docket each month, this could bring financial ruin to Philips.  

Philips Devotes $630 Million to CPAP Class Action Lawsuits 

The CPAP recall has contributed to a major decline in Philips’ revenue and operations. Philips is still struggling to deliver millions of repaired machines to consumers. Furthermore, the company has issued several other recalls since the one in 2021.  

In an announcement addressing the mounting legal challenges and fostering improvements, Philips released its first-quarter results for 2023. These caught the attention of both the industry and the public. The company has reserved $630 million for potential resolutions of the class-action lawsuits filed against them. 

It is important to note that the $630 million focuses on economic claims leveled against Philips rather than personal injury claims. These economic lawsuits revolve around financial losses incurred by users as a result of the device recall. Damages in these claims include expenses related to replacement equipment, medical monitoring, and other associated costs. This proposed amount does not apply to personal injury claims, which are still being pursued in federal and state courts.  

In a statement, Roy Jakobs, CEO of Royal Philips, said, “Resolving the Philips Respironics recall for patients remains our highest priority. In the first quarter, we have recorded a provision in anticipation of a resolution of the economic loss class action in the US. This is an important step in addressing the litigation related to the recall.”  

 The Lake Law Firm Stands by the Victims of Philips CPAP Machines  

The Lake Law Firm is here to assist individuals who have suffered personal injuries due to the Philips CPAP recall. The $630 million is a positive development toward addressing the economic loss of CPAP class action lawsuits. However, there is still a long road ahead for those seeking compensation for their personal injuries. Our dedicated team at The Lake Law Firm is committed to standing by our clients every step of the way, ensuring they receive the justice and compensation they deserve.  

Contact The Lake Law Firm today at (888) 525-3529 to see if you qualify for a Philips CPAP lawsuit if you or a loved one have been injured by a recalled Philips device.