AMSTERDAM (Reuters) – Dutch health technology company Philips expects to reach settlements this year relating to its global recall of respiratory devices, CEO Roy Jakobs said in an interview with Dutch financial daily FD published on Thursday.
“I think we can at least reach a settlement on economic damages this year,” Jakobs said without giving details on the expected costs.
Jakobs added he “hopes and expects” to also reach a settlement with the U.S. Food and Drugs Administration this year.
A settlement with patients who claim that the use of the recalled machines made them sick probably will take longer, he said.
Philips spokespeople could not be immediately reached for comment.
The company recalled in 2021 millions of breathing devices and ventilators used to treat sleep apnea because foam used to dampen noise from the devices might degrade and become toxic, carrying potential cancer risks.
Fears of large litigation bills have since wiped 70% off Philips’ market value.
(Reporting by Bart Meijer; Editing by Muralikumar Anantharaman)
