Dutch medical device maker Philips said Monday it had reached a $1.1 billion deal in the United States to settle lawsuits over faulty sleep machines in a case that has rocked the company.
Since 2021, the company has been battling a series of crises over its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep.
Earlier this year, the company said it would halt new sales of the machines in the United States following a series of recalls of the devices made by subsidiary Philips Respironics.
Philips said in a statement Monday that it had reached an agreement with the plaintiffs "to resolve the personal injury litigation and the medical monitoring class action to end the uncertainty associated with litigation in the US."
It added that it did not "admit any fault or liability, or that any injuries were caused by Respironics' devices."
The settlement addresses claims filed in US courts and other potential cases, it said.
"The related payments are expected in 2025 and will be funded from Philips' cash flow generation," the statement said, adding that the company had booked a provision of 982 million euros ($1.05 billion) in in the first quarter to cover the settlement.
Philips said it also concluded an agreement with insurers to pay Philips 540 million euros to cover Respironics recall-related claims.
Philips posted losses of 463 million euros ($501 million) over the full year in 2023.
The company has had to cut thousand of jobs.
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