Philips will Compensate some Claimants

In the dispute over defective respiratory devices that have already been recalled, medical equipment maker Philips has reached an agreement with some of the U.S. claims on a settlement payment. This does not affect lawsuits concerning alleged damage to health.

The settlement only applies to claims that have alleged economic harm - this includes users of the devices as well as insurers.

In the first quarter, the Dutch group had already set aside 575 million euros for the legal disputes in the USA. As the Bloomberg news agency now reported, the settlement payments amount to at least 479 million dollars (447 million euros). If more claimants join, the sum could rise. According to Philips, the payments will be due in the first quarter of next year at the earliest. The court responsible would still have to approve the settlement.

Philips had to recall around 5.5 million devices worldwide. The affected devices contained an insulating foam from which particles were released. The foam used in the devices is suspected of becoming toxic over time. In addition to the provisions of 575 million from the first quarter, the company had budgeted around one billion euros for the recall. (uh)