The stock of Dutch medical device company Philips (PHG) is up more than 40% after the company agreed to pay $1.1 billion U.S. to settle personal injury cases in America related to its sleep apnea products.
Millions of Philips’ sleep apnea devices were recalled in 2021 over concerns that components carried potential cancer risks. Class action lawsuits followed the company’s recall.
Now, Philips says that the settlement it agreed to pay will end the uncertainty over the litigation for the company.
It said in a news release that it did not admit any fault or liability, or that any injuries were caused by its Respironics sleep apnea devices.
The $1.1 billion U.S. payment made by Philips is also less than the $4 billion U.S. that was expected by many analysts who cover the company and its stock.
Philips still faces some lawsuits in Europe over the sleep apnea recall. However, most of the legal cases are now considered settled.
The 40% jump in Philips stock on news of the legal settlement takes the company’s share price to its highest level since March 2022.
Prior to today (April 29), Philips’ stock had risen 6% over the past 12 months to trade at $21.07 U.S. per share. However, over five years, the stock is down 47%.
Tech Insider
