Philips Respironics has consented to pay $1.1 billion to settle a slew of personal injury lawsuits and medical monitoring claims arising from a significant recall initiated in 2021. The recall pertained to CPAP, BiPAP, and mechanical ventilators equipped with a flawed sound abatement foam. This foam deteriorated over time, releasing harmful particles directly into the air pathways of the breathing machines.

The settlement was disclosed by Philips today, within an investor earnings report for the first quarter of 2024. Following a mediation with Judge Diane M. Welsh, both the manufacturer and the plaintiffs’ legal representatives reached an agreement to address claims alleging various injuries caused by the defective machines, including cancer, respiratory issues, and lung damage.

Since the initial announcement of the Philips CPAP recall in July 2021, tens of thousands of personal injury and wrongful death lawsuits have flooded in. These lawsuits encompass millions of devices sold over several decades, all of which contained a polyester-based polyurethane foam designed to mitigate noise and vibrations during nighttime use. However, due to the serious health risks posed by the CPAP foam, users were advised to cease usage unless required for life-sustaining treatment.

In September, Philips declared its intention to allocate at least $445 million in a CPAP recall class action settlement for individuals who purchased, rented, or leased one of the affected devices. Additionally, $34 million was earmarked for health insurance companies and other entities that reimbursed users for replacing the machines. Nonetheless, this settlement did not address individual injury claims from former users or class action claims seeking funding for future medical monitoring.

In the investor report, Royal Philips CEO Roy Jakobs unveiled that the total payouts for the Philips CPAP injury settlement would amount to $1.1 billion, with $40 million to be contributed by insurers and the remainder drawn from the company’s revenues, beginning in 2025. Further specifics of the agreement, such as the average settlement amounts for specific injuries, remain undisclosed, as do options for claimants to pursue further litigation against the company.

The announcement coincided with U.S. District Judge Joy Flowers Conti’s final approval of an economic loss settlement agreement following a conference held on April 25. This new agreement seemingly resolves most, if not all, Philips CPAP lawsuits across the federal court system. However, the company has made it clear that it does not admit any fault or liability in these settlement agreements.

Previously, Jakobs had expressed his anticipation for the company to reach a global settlement for CPAP injury lawsuits within the year. Earlier this month, the company also consented to a decree prohibiting the sale of Philips CPAP devices in the U.S. until they can demonstrate compliance with FDA standards.

Final approval from Judge Conti is still pending for the personal injury and medical monitoring settlement agreement.