Philips Respironics reached a $1.1 billion settlement following allegations that people who used their CPAP and other breathing devices were injured by harmful gases and foam particles that became lodged in their passages respiratory, sometimes for years.
Thousands of people have claimed in lawsuits that they were injured by the popular Philips DreamStation machines. The regulation covers CPAP, or continuous positive airway pressure, devices that people with sleep apnea or other breathing difficulties use at night to improve their breathing, as well as other types of devices used to at home and in hospitals.
Philips admitted no wrongdoing in the settlement, including whether the devices caused the injuries, according to a financial report published Monday.
The personal injury settlement follows a $479 million settlement reached in September over economic losses suffered by patients and the medical equipment sales companies that financed the replacement of the devices. Philips also agreed to a consent decree earlier this year that required the company to pause its sales of new devices in the United States until certain conditions were met.
Monday’s agreement largely ends years of litigation over an issue that deeply upset patients and doctors, who had to weigh the risk of leaving patients’ interrupted breathing untreated against using d a machine that could cause damage. Patients have flooded lawmakers and the Food and Drug Administration with complaints about a chaotic recall and replacement effort that has left many of them waiting months, or even more than a year, for an updated device.
In a letter In Philips in May 2022, the FDA noted that the company had received reports of the problem as early as 2015, but failed to evaluate the information and fix the device’s problems.
The recall began in the summer of 2021, amid concerns that the machines were emitting potentially carcinogenic gases. The initial recall affected about 15 million respirators produced since 2006, although about five million were still in circulation as of mid-2021.
The FDA reported earlier this year that since Philips first alerted of problems, officials had received 116,000 complaints, including 561 reports of deaths, that people or lawyers said were linked to the defective foam of the device.
The company has since toned down its warnings, saying more extensive testing showed the gases were not as toxic as initially thought.
Investors recognized the resolution, as the company’s stock jumped about 33 percent Monday morning, to about $28 per share. The company said part of the settlement would be covered by insurance.
Lawyers for the plaintiffs welcomed the settlement.
“Ultimately, these combined agreements accomplish what we sought to achieve when this litigation began: holding Philips accountable by obtaining care for those suffering physical injuries and compensation for those who need new breathing devices.” , Sandra L. Duggan, Kelly K. Iverson and Christopher A. Seeger, the attorneys representing the plaintiffs, said in a statement.
