# Philips expects to reach recall settlements this year
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-30
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Philips Expects Settlements in 2022 Over Respiratory Device
Meta Description: CEO Roy Jakobs says Philips expects to reach settlements this year for economic damages and with the U.S. FDA relating to the recall of breathing devices.
URL: https://financedigest.com/philips-expects-to-reach-recall-settlements-this-yearhtml

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AMSTERDAM (Reuters) – Dutch health technology company Philips expects to reach settlements this year relating to its global recall of respiratory devices, CEO Roy Jakobs said in an interview with Dutch financial daily FD published on Thursday.

“I think we can at least reach a settlement on economic damages this year,” Jakobs said without giving details on the expected costs.

Jakobs added he “hopes and expects” to also reach a settlement with the U.S. [Food and Drug Administration this year](https://www.financedigest.com/world-food-prices-rise-for-first-time-in-a-year-fao.html "World food prices rise for first time in a year- FAO").

A settlement with patients who claim the use of the recalled machines made them sick probably will take longer, he said.

A spokesperson for Philips confirmed the quotations in the newspaper were accurate.

[Shares in the Amsterdam-listed company were up 3.9% to 16.14 euros](https://www.financedigest.com/mercedes-benz-to-buy-back-up-to-4-billion-euros-in-shares-by-2025.html "Mercedes-Benz to buy back up to 4 billion euros in shares by 2025") at 0729 GMT.

The company recalled millions of breathing devices and ventilators used to treat sleep apnea in 2021 because foam used to dampen noise from the devices might degrade and become toxic, carrying potential cancer risks.

Fears of [large litigation bills](https://www.financedigest.com/euro-zone-current-account-deficit-widens-again-on-large-energy-bill.html "Euro zone current account deficit widens again on large energy bill") have since wiped 70% off Philips’ market value.

The economic damages claim was made by people, [hospitals and health plans who say](https://www.financedigest.com/the-icu-is-full-medical-staff-on-frontline-of-chinas-covid-fight-say-hospitals-are-overwhelmed.html "‘The ICU is full’: medical staff on frontline of China’s COVID fight say hospitals are ‘overwhelmed’") they suffered economic losses when the millions of machines were recalled.

(Reporting by Bart Meijer; Editing by Muralikumar Anantharaman and Mark Potter)


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