BY CHRIS NEWMARKER

A federal judge in Pennsylvania has granted preliminary approval to an economic loss settlement involving lawsuits filed against Philips over its massive recall of CPAPs and other respiratory devices.
U.S. District Court Judge Joy Flowers Conti’s order, filed yesterday, could just be the beginning of settling what has arguably been one of the medical device industry’s most serious recalls in recent decades. (Here is a full timeline of the Philips recall.)
According to plaintiffs’ co-lead counsel, Philips has agreed to provide at least $479 million in compensation to device users who paid out of pocket to buy or rent the recalled devices, as well as payers who reimbursed users for the devices. Awards could range between $55.63 and $1,552.25 for each recalled device, plus a $100 award apiece for those who returned devices.
“We are pleased that Judge Conti granted preliminary approval of the Philips economic loss settlement and encourage all class members to take advantage of the compensation and other benefits provided under the agreement,” said Sandra L. Duggan of Levin Sedran & Berman, Kelly K. Iverson of Lynch Carpenter, Christopher A. Seeger of Seeger Weiss and Steven A. Schwartz of Chimicles Schwartz Kriner & Donaldson-Smith.
The settlement, first announced in September, only covers economic losses incurred by the plaintiffs. Philips did not admit liability, wrongdoing or fault in the settlement and still faces significant lawsuits claiming deaths, injuries and medical costs related to the recall. Plus, there are ongoing consent decree talks with the U.S. Department of Justice.
Said the plaintiffs’ co-lead counsel: “This settlement is an important first step toward holding Philips accountable for their negligence and disregard for consumer safety. We will continue to pursue justice on behalf of those injured by Philips’ defective products and seek the creation of a comprehensive medical monitoring program for all those exposed to toxic foam.”
Set up in 2021, the Multidistrict Litigation in U.S. District Court in Western Pennsylvania presently includes more than 300 civil actions.
Since April 2021, the FDA has received 105,000 reports of problems, including 385 reports of deaths potentially associated with the foam degradation issue. (It’s important to note that FDA’s Medical Device Reporting (MDR) system is a passive system with limitations.)
Philips CEO Roy Jakobs has said the Dutch medtech giant is deeply sorry about the recall.