PLAINTIFFS REACH CLASS SETTLEMENT WITH PHILIPS TO RESOLVE ECONOMIC LOSS CLAIMS FOR RECALLED CPAPs, BI-PAPs, AND VENTILATORS
Uncapped Settlement provides more than $479M in cash payments to recalled device users and payers, and total payout may increase as more claims are filed. Settlement preserves personal injury and medical monitoring claims, which are ongoing.
PITTSBURGH – Plaintiffs’ co-lead counsel in the Philips Recalled CPAP, Bi-Level PAP, and Mechanical Ventilator multidistrict litigation (“MDL 3014”) today filed a class action settlement agreement to resolve all economic loss claims against Philips with respect to the approximately 10.8 million devices the company recalled in the United States on June 14, 2021, because of the alleged health risks caused by toxic sound-reducing foam. Philips has agreed to provide a minimum of more than $479 million to device users who purchased or rented recalled devices and incurred out of pocket costs, and payers who reimbursed users for the cost of recalled devices.
Plaintiffs’ co-lead counsel – Sandra L. Duggan of Levin Sedran & Berman LLP; Kelly K. Iverson of Lynch Carpenter LLP; Christopher A. Seeger of Seeger Weiss LLP; and Steven A. Schwartz of Chimicles Schwartz Kriner & Donaldson-Smith LLP – issued the following statement:
“This settlement provides substantial monetary compensation to those who were sold or paid for defective devices by Philips and is an important step towards justice. Once approved by the court, we encourage all members of the nationwide settlement class to avail themselves of the benefits provided under the agreement.
“While this settlement marks a significant milestone, our work is far from finished. We will continue to pursue personal injury and medical monitoring claims on behalf of all plaintiffs against Philips, which are specifically excluded from this resolution. We are confident in these claims and we look forward to holding Philips accountable for the physical harms they caused patients.”
Under the terms of the economic loss agreement, Philips will pay device payment awards to users for each recalled device, which range from $55.63 to $1,552.25. Payers will be paid separately. Additionally, users will receive a device return award of $100 for each recalled device returned to Philips. Device replacement awards are available to cover the cost of new machines purchased out of pocket once the recall was announced, and the Settlement gives extended warranties on remanufactured devices provided to users through the recall. Users who return their recalled devices to Philips after they have a suitable replacement are eligible to receive awards on an accelerated basis after final approval of the settlement. Philips will also pay the cost of notice, settlement administration, and attorneys’ fees on top of awards to class members.
Philips will be required to pay more than $479 million in a non-reversionary fund, with any remainder distributed pro rata to Eligible Class Members. This amount will increase as more recalled devices are returned to Philips.
This settlement expressly preserves personal injury and medical monitoring claims. The agreement with Philips is subject to preliminary and final court approval by the Honorable Joy Flowers Conti in the United States District Court for the Western District of Pennsylvania (“MDL Court”). The MDL Court will retain jurisdiction over the settlement class to administer and supervise the implementation of the agreement. The settlement was mediated under the supervision of the Honorable Diane M. Welsh (Ret.).