Millions of devices were recalled over concerns that users could inhale particles of noise-cancelling foam, which could potentially cause cancer.
Key takeaways
Philips announced it reached an agreement in principle with the US Justice Department to resolve investigations related to its DreamStation sleep machine recall. The company set aside €288 million for the settlement, which is expected to be paid in the first quarter of 2027.
- The recall involved millions of DreamStation devices due to risks from inhaling foam particles.
- Philips reserved €288 million in Q3 to settle the criminal and civil investigations.
- The settlement provision reduced Philips' Q3 profits to €28 million from €187 million the previous year.
Summarised automatically by AI from the original article by Free Malaysia Today. AI can make mistakes, so check the original for details.
Philips set aside US$322 million in Q3 this year to settle the long-running case over faulty sleep machines, with payment expected in Q1 of 2027. (EPA Images pic)AMSTERDAM: Dutch electronics and medical device manufacturer Philips said Tuesday it had reached a deal "in principle" with US authorities to settle a long-running case over faulty sleep machines.
The company has for years been weighed down by a series of crises over the recall of its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep.
Millions of devices were recalled over concerns that users were at risk of inhaling pieces of noise-cancelling foam and fears it could potentially cause cancer.
