Philips will pay $1.1billion to people who said company's $1,600 sleep apnea ... trends now
Electronics giant Philips has reached a $1.1 billion settlement deal with patients who claim the firm's sleep apnea machines caused their cancers and other diseases.
The Dutch company will shell out the money to settle over 700 lawsuits brought forward by more than 58,000 Americans who say they were affected.
But the deal still must be finalized by a federal judge, and sufferers and their families won’t see any compensation until 2025.
The breathing devices were part of a massive 2021 recall after they were found to release toxic foam and gasses which have been linked to kidney and liver damage, lung infections, and cancers.
CPAP masks come in various styles and sizes to accommodate different preferences and facial structures. They consist of a motor that draws in room air and pressurizes it. The pressurized air is delivered through a hose to a mask worn over the nose, mouth, or both
The recall affected a range of Philips machines for sleep apnea, a condition characterized by pauses in breathing or choking for air during sleep.
The machine delivers a steady stream of mild air pressure through a tube connected to a snorkel-like mask to keep the airways from collapsing.
But they were found to be leaking particles of black foam used to dampen the sound of the machine through the tube that connects to the person’s face. As the foam degraded, it entered the airway, which carries a host of severe health risks from asthma to head and neck cancer.
The foam in the recalled CPAP machines was made with polyester-based polyurethane, which was found to degrade into smaller particles and toxic gases that the user could inhale.
The massive settlement comes less than a year after a partial $479 million settlement on Sept. 8, 2023, to compensate people for financial damages related to the recall.
An estimated 30 million Americans have sleep apnea, but only about 6 million have gotten a diagnosis, while about 5 million Americans have at least tried using a CPAP device, including President Joe Biden.
Philips still does not admit any fault or liability for its apnea devices, including Bi-Level Positive Airway Pressure (Bi-Level PAP), Continuous Positive Airway Pressure (CPAP), and mechanical ventilator devices, which cost between $500 to $1,650.
Rodney Thomas was just 51 years old when he died from cancer in 2021 after using a Philips sleep apnea machine for several years
While Philips did not admit to doing anything wrong or negligent, its leaders were optimistic that swiftly ending its legal battles would protect its overall cash flow in the near term.
Philips CEO Roy Jakobs said in a company call to discuss early 2024 financial results that they are ‘very confident that this [settlement] will really put an end to this.
‘And that's very important because then, with ending economic loss, economic personal
