Philips settles suits over its sleep apnea machines for $1.1 billion

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Updated on: April 29, 2024 / 5:45 AM EDT / CBS/AFP $479 million settlement in CPAP machine recall Philips reaches $479 million settlement over CPAP machine recall 00:23 Dutch medical device maker Philips said Monday it had reached a $1.1 billion deal in the United States to settle lawsuits over faulty sleep machines in a case that's rocked the company.
Earlier this year, the company said it would halt new sales of the machines in the United States following a series of recalls of the devices made by subsidiary Philips Respironics.
Philips said in a statement Monday that it had reached an agreement with the plaintiffs "to resolve the personal injury litigation and the medical monitoring class action to end the uncertainty associated with litigation in the U.S."
"The related payments are expected in 2025 and will be funded from Philips' cash flow generation," the statement said, adding that the company had booked a provision of $1.05 billion in in the first quarter to cover the settlement.