Philips To Pay $479M To Resolve CPAP Class Action Settlement

Philips To Pay $479M To Resolve CPAP Class Action Settlement

Introduction

A prominent producer of CPAP devices, Philips Respironics, has chosen to pay up US$479 million to resolve a number of lawsuits.

The accusations originate from claims that the company's products released harmful foam and gas right into the mouths of consumers. According to the model, the compensation for people who purchased, rented, or borrowed the recalled gadgets will range from US$55 to US$1,552 per unit.

Additionally, according to court filings, an additional US$100 will be given for each device that is returned. It's crucial to keep in mind, though, that Philips has not admitted guilt as part of this arrangement.

The settlement only pays for the expenses related to user and vendor reimbursement for the devices they purchased. However, it does not include claims for medical bills and personal harm damages, which are still open and being looked at, according to the court documents.

Philips Respironics recently replaced 2.5 million sleep apnea devices, including different ventilators, BiPAP, and CPAP versions, after recalling 10.8 million of them. The oldest of the 16 models being recalled is a 2009 model.

The business informed consumers and medical professionals in 2021 that the foam in its sleep apnea equipment might break down into particles. The users may eat or inhale these particles if they pass via the air passage of the gadget. This might have negative impacts on other organs, including the kidneys and liver, as well as harmful carcinogenic consequences and health hazards like headaches, asthma, and other conditions.

According to Philips Respironics, the settlement has been designed to swiftly benefit qualifying patients in the United States and to boost consumer trust in the reliability and safety of Philips Respironics products.

Philips stated in a 2021 recall announcement that there had been no reports of deaths allegedly brought on by the foam in its products. However, the Food and Drug Administration has received more than 105,000 complaints since April 2021, including 385 cases of fatalities connected to the disintegration of the foam.

Philips is one of the market's leading participants. The sleep apnea device business is a multibillion dollar industry.