Philips sets aside €288m to settle US sleep apnea probe

Philips has reached an agreement in principle with the US Department of Justice over investigations into its subsidiary Respironics. The Dutch healthcare technology company is setting aside €288 million for the settlement, which weighed on its third-quarter profit.

Philips recalled millions of sleep apnea devices in 2021 because foam particles came loose from them. Philips says the payment would end a criminal and a civil investigation into the recall.

"The settlement depends on completion of the relevant documentation; payment is expected in the first quarter of 2027," Philips said in its quarterly results.

Revenue rose in the third quarter, helped by sales of medical equipment, electric toothbrushes and shavers.

Net profit still fell sharply in the third quarter, to €28 million from €187 million a year earlier, because the settlement amount was booked in these results.

The problems with the sleep apnea devices came to light five years ago, when it emerged that the insulating foam inside them could crumble. Philips recalled millions of devices. The affair has already cost the company billions of euros in settlements, write-downs, repair costs and other expenses.