Investors claiming €800 million in damages from Philips due to sleep apnea scandal

A group of over hundred institutional investors are claiming over 800 million euros worth of damages from Philips. The medical technology company is said to have concealed the health risks of its sleep apnea devices for years. The problems were reported in 2021, and this led to the company’s stocks dropping sharply and shareholders making significant losses. The group sent Philips a letter this week notifying them of their claim.

This was reported by DRRT, an attorney’s office, who along with Rubicon Impact & Litigation, is defending the group. DRRT claims that Philips knew that foam from the devices could crumble into carcinogenic particles since 2015. The company did not share this information with regulators, shareholders or the public, and continued to manufacture the devices and sell them, making significant profits while doing so, the attorney’s office said.

The price of Philips shares dropped several times after the devices were recalled and regulators released details about the investigations. The market value of the company dropped by almost 28 billion euros between 2021 and 2024, according to DRRT. This is the reason that the group of investors made significant losses.

Philips denies responsibility and said that they will “vehemently” defend themselves against these accusations. “Philips believes that it has notified investors in an adequate and timely manner about the problems with Respironics,” a spokesperson said.

Respironics is a Philips subsidiary that was responsible for the manufacturing of the devices. The spokesperson emphasized that the group has not yet submitted an official claim.

VEB, the organization known for shareholders' lawsuits, said in 2022 that Philips is responsible for the losses that shareholders made due to the sleep apnea affair. The VEB then estimated the damage caused by price losses at 16 billion euros.

Philips reached a settlement agreement of 1.1 billion dollars last year in regards to claims surrounding the scandal. Philips also reached an agreement to compensate American patients for economic damage caused by the devices.