Philips Respironics settles $1.1 billion over claims that people using CPAP and other breathing machines were harmed by toxic gas and foam debris that lingered in their airways, sometimes for years. reached.
Thousands of people have claimed in lawsuits that they were injured by Philips' popular DreamStation machine. The settlement covers CPAP (continuous positive airway pressure machines), devices used at night by people with sleep apnea and other breathing difficulties to improve breathing, and other devices used at home and in hospitals. Affects types of equipment.
Philips did not admit any fault in the settlement, including whether the device caused the injury, according to a financial report issued Monday.
The personal injury settlement follows a $479 million settlement reached in September over financial losses to patients and medical device distributors who financed replacement equipment. Earlier this year, Philips also agreed to a consent decree that forces the company to stop selling new devices in the United States until certain conditions are met.
Monday's agreement all but settles years of litigation over an issue that has been deeply upsetting for patients and doctors, putting an end to the risks of leaving patients' interrupted breathing untreated and the risks of leaving machines that could cause harm. had to weigh the use of Patients have flooded lawmakers and the Food and Drug Administration with complaints about chaotic recalls and replacements, leaving many people waiting months or even a year or more for the latest devices.
In a letter to Philips in May 2022, the FDA said the company had received reports about the issue as early as 2015, but failed to evaluate the information and address the device issue.
The recall began in the summer of 2021 amid concerns that the machines spewed potentially carcinogenic gases. The first recall affected about 15 million respirators produced since 2006, but as of mid-2021, about 5 million were still in circulation.
The FDA said earlier this year that since Philips first alerted to the problem, the agency has received 116,000 complaints, including 561 reports of deaths, and that people and lawyers believe the devices are defective. reported that it claimed to be related to a certain form.
The company later weakened its warning, saying further testing showed the gas was not as toxic as originally thought.
Investors recognized the resolution, sending the company's stock up about 33% on Monday morning to about $28 per share. The company said a portion of the settlement will be covered by insurance.
Lawyers for the plaintiffs welcomed the settlement.
“Ultimately, these consolidation agreements accomplish what we set out to accomplish when this litigation began: providing care for people who have sustained physical injuries and need new breathing equipment; “We hold Phillips accountable by obtaining compensation for this,” Mr. Seeger, attorney for plaintiffs Sandra L. Duggan, Kelly K. Iverson, and Christopher A., said in a statement.