Philips wins Dutch court battle with shareholders over recall
The court said Philips had no reason to know about the defects earlier, as the recall of about 15 million devices triggered probes in several countries.
- On Saturday, The Enterprise Chamber of the Amsterdam Court of Appeal dismissed a shareholder demand for an investigation into Philips regarding allegations of misleading disclosures and management failures linked to the company's sleep apnea device recall.
- Philips recalled around 15 million sleep apnea devices in 2021 after discovering the foam could release harmful substances, causing company shares to lose about two thirds of their value.
- The Amsterdam Court found no indication that Philips knew about the problems before issuing warnings, ruling there was no reason to assume executives should have intervened earlier at the Respironics subsidiary.
- Philips denied the shareholders' accusations of misleading disclosures and stated it welcomed the Amsterdam Court's decision to dismiss the inquiry.
- Beyond the Dutch ruling, Philips faces ongoing international legal pressure, including fraud probes in France and a $1.1 billion 2024 settlement for personal injury claims filed in the United States.
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25 Articles
There will be no independent, in-depth investigation into the decision-making within Philips regarding the sleep apnea affair.
The judge has rejected the requests of the Dutch Securities and Exchange Commission (VEB) and a large group of investors for an in-depth investigation into Philips. In 2021, a global recall took place of ventilators and sleep apnea devices from an American subsidiary of Philips.
Reformatorisch Dagblad
welingelichtekringen.nlThe judge has rejected the requests of the Dutch Securities and Exchange Commission (VEB) and a large group of investors for an in-depth investigation into Philips. In 2021, a global recall took place of ventilators and sleep apnea devices from an American subsidiary of Philips.
Philips wins Dutch court battle with shareholders over recall
A Dutch court on Saturday dismissed demands by shareholders of health technology company Philips for an investigation into allegations of misleading disclosures and management failures linked to the company's recall of sleep apnea devices.
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