Philips’ Respironics division has reached an “agreement in principle” with the U.S. Department of Justice to settle a long-running investigation into its recall of millions of sleep apnea and respiratory devices.
In 2021, the company recalled millions of devices over concerns that sound-dampening foam could break down, potentially exposing users to harmful particles and chemicals.
In 2024, Philips reached a $1.1 billion settlement in the U.S. to resolve personal injury lawsuits and medical monitoring claims related to the recalled devices.
Now, the company has revealed in its third-quarter financial results that it is nearing a final deal with the DOJ to “resolve the criminal and civil investigations related to the Respironics recall”.
Philips recorded a provision of 288 million euros ($322 million) for the proposed settlement in the third quarter, with payment “expected in the first quarter of 2027.”
A separate investigation by U.S. state attorneys general remains ongoing.