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HomeTrading RoomAs the Company Resolves the US Respiratory Device Lawsuit, Philips Shares Soar...

As the Company Resolves the US Respiratory Device Lawsuit, Philips Shares Soar 46%

Philips’ stock price surged to a two-year high on Monday following the announcement of a $1.1 billion settlement in the U.S. regarding personal injury cases related to the recall of its sleep apnea devices.

The Dutch medical devices giant faced scrutiny after millions of devices were recalled in 2021 due to concerns about potential cancer risks associated with certain components. At 11:15 a.m. London time, Philips shares were up by 46%.

In response to the settlement, Philips allocated 982 million euros ($1.1 billion) to cover the costs of personal injury and medical monitoring claims, stating that the agreement would bring an end to the uncertainty surrounding the litigation. The company emphasized that it did not admit any fault or liability for any injuries allegedly caused by its Respironics devices.

Philips CEO Roy Jakobs reinforced the company’s commitment to patient safety and quality, acknowledging the importance of addressing the repercussions of the Respironics recall.

Source (CNBC)

SourceCNBC
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