Share prices for medical device maker Philips soared after the Dutch company announced it had reached a $1.1 billion settlement over faulty CPAP and BiPAP sleep therapy devices that the Federal Drug Administration said led to more than 560 deaths.
Earlier this year, Philips said it would stop sales of its DreamStation machines that treat sleep apnea after FDA issued a recall. In reaching the deal, Philips said in a statement that it would “resolve the personal injury litigation and the medical monitoring class action to end the uncertainty associated with litigation in the U.S.” It added, however, that the company does not admit fault, liability or that its devices caused injuries.
The settlement wasn’t as devastating as many investors feared and ended the uncertainty caused by the litigation. “Patient safety and quality is our highest priority, and we have taken important steps in further resolving the consequences of the Respironics recall,” said Philips chief executive Roy Jakobs in a statement.
