Philips expects €288m US settlement over sleep-apnoea device recall

Philips says it has reached an agreement in principle with the US Department of Justice to resolve criminal and civil investigations into its sleep-apnoea device recall. The company expects to pay €288 million, with payment anticipated in the first quarter of 2027, subject to finalising the relevant documentation.

The Dutch medical technology company announced the proposed settlement with its quarterly results. It said the agreement was not yet final because the documentation still had to be completed.

The investigations relate to the recall of millions of sleep-apnoea devices after problems emerged with insulating foam that could break down. Philips says the issue has already cost it billions of euros in settlements, write-downs, repairs and other expenses.