One of the nation’s largest makers of devices for sleep apnea patients has agreed to pay at least $479 million to compensate customers who bought the devices.
Philips Respironics and Koninklijke Philips NV, its Netherlands-based parent company, will also provide $15 million to customers seeking to replace their continuous positive airway pressure (CPAP) machines, court documents released Thursday show. The settlement comes more than two years after Philips recalled millions of its CPAP machines after users reportedly unexpectedly sprayed foam from the machines into their mouths.
The company admitted no wrongdoing in a recent blog post, adding that it had already set aside $615 million earlier this year in anticipation of a settlement.
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“The final cost of the settlement may depend on, among other things, how many patients participate in the settlement and how high the court approves the fees associated with the settlements,” the company said in its post.
Philips recalled its CPAP machines in 2021 and since then, the U.S. Food and Drug Administration says it has received 105,000 complaints, including 385 reported deaths, reportedly linked to the leaking foam. The foam is specifically used in Philips CPAP machines to reduce noise.
In a statement to CBS MoneyWatch, Philips said it has repaired about 4.6 million of its devices worldwide since the recall, including 2.5 million in the United States
“Patient safety and quality are our top priorities and we want patients to feel confident when using their Philips Respironics devices,” the company said. “We have structured this settlement to quickly provide value to eligible patients in the U.S. and provide an additional level of confidence in the safety and quality of Philips Respironics products.”
Complaints to the FDA included reports linking the devices to cancer, breathing problems, pneumonia, chest pain, dizziness and infections. FDA officials warned Americans against using Philips CPAP machines earlier this year, saying the products “could cause serious injury or death.” Inhaling the foam could cause “serious injuries that could be life-threatening,” Philips wrote in its recall.
Sleep apnea patients are still suffering until the CPAP machine recall in 2021
Philips attempted to repair some of the devices, but the repaired devices were also recalled, the FDA said. The 2021 recall affected 20 different Philips devices, including the A-Series BiPAP ventilators and the DreamStation CPAP machines.
Dozens of sleep apnea patients have filed lawsuits against Philips related to its CPAP machines in recent years, but those lawsuits were consolidated into a class action lawsuit in Pennsylvania in October 2022. In many of these lawsuits, Philips customers accused the company of knowing the CPAP machines were defective but selling them anyway.
Lawyers representing the CPAP users said Thursday that the settlement only covers the economic losses suffered by customers and that they will seek compensation for those with personal injury claims.
According to 2022 data from the American Medical Association, about 30 million people in the United States suffer from sleep apnea, a condition in which the airways become blocked while at rest and breathing is interrupted.
Although it is not yet possible to file a claim, eligible Philips customers seeking compensation from the settlement can do so here. In the meantime, consumers can sign up for emails to be notified of updates.
Anyone with questions about the settlement can email [email protected].
Philips said it expects to begin paying out settlement funds in the first quarter of 2024 at the earliest.
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Christopher J Brooks