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Philips reaches DOJ agreement over device recall, books €288 million provision in Q3

Philips has reached an agreement in principle with the United States Department of Justice to resolve criminal and civil investigations tied to a massive 2021 global recall of sleep and respiratory care devices. Alongside the proposed settlement, the Dutch medical device maker booked a provision of €288 million during the third quarter. The agreement addresses enforcement actions stemming from the Respironics subsidiary recall of 15 million faulty sleep apnea machines. Company shares rose following the announcement as stronger profitability and the resolution of the long-running regulatory case revived market confidence.

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  • ✓ Philips reached a preliminary agreement in principle with the US Department of Justice to end investigations linked to the 2021 global recall.
  • ✓ The company booked a provision of €288 million in the third quarter for the proposed settlement.
  • ✓ The DOJ settlement relates to the Respironics subsidiary global recall of 15 million faulty sleep apnea and respiratory devices.
  • ✓ Philips shares rose following the announcement of third-quarter results and the legal resolution.
🛡️ Source Corroboration: 16 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

Philips announced a preliminary deal with the U.S. Department of Justice alongside its third-quarter financial results.

Live updates

  1. Philips Reaches DOJ Agreement Over Sleep Device Recall

    Philips has reached an agreement in principle with the United States Department of Justice to resolve criminal and civil investigations tied to a massive 2021 global recall of sleep and respiratory care devices. Alongside the proposed settlement, the Dutch medical device maker booked a provision of €288 million during the third quarter. The agreement addresses enforcement actions stemming from the Respironics subsidiary recall of 15 million faulty sleep apnea machines. Company shares rose following the announcement as stronger profitability and the resolution of the long-running regulatory case revived market confidence.

    Why it matters

    The agreement closes a major chapter on regulatory penalties and investigations that followed the widespread 2021 recall of millions of breathing machines. Resolution of these inquiries removes a significant cloud of legal uncertainty for the company. The financial impact was absorbed into the third-quarter results alongside positive business performance.

    What is confirmed

    • Philips reached a preliminary agreement in principle with the US Department of Justice to end investigations linked to the 2021 global recall.
    • The company booked a provision of €288 million in the third quarter for the proposed settlement.
    • The DOJ settlement relates to the Respironics subsidiary global recall of 15 million faulty sleep apnea and respiratory devices.
    • Philips shares rose following the announcement of third-quarter results and the legal resolution.

    What to watch next

    • Finalization and formal signing of the DOJ settlement agreement
    • Further updates on regulatory and FDA recall status for Respironics
    Sources used for this update (16)
    1. Reuters — Philips reaches DOJ agreement over device recall, books €288 million provision in Q3
    2. Philips — Philips announces its 2026 Third-Quarter Results
    3. WSJ — Philips Shares Rise After Stronger Profitability Revives Confidence
    4. NL Times — Philips reaches $288 million agreement with U.S. over sleep apnea case
    5. Yahoo Finance UK — Philips says reached deal 'in principle' with US over sleep machine recall
    6. Fierce Biotech — Philips sets aside $322M for proposed DOJ settlement over sleep apnea device recall
    7. Morningstar — Philips Earnings: Almost Closing the Chapter on Respironics Recall; Business Results Decent
    8. DutchNews.nl — Philips settles sleep apnoea case with US regulators for €288m
    9. www.aol.com — Philips reaches DOJ agreement over device recall, books €288 ...
    10. northlandnewsradio.com — Philips reaches DOJ agreement over device recall, books €288 ...
    11. finance.yahoo.com — Philips says reached deal 'in principle' with US over sleep ...
    12. www.medicaldevice-network.com — Philips reports positive Q3; outlines €288m recall settlement ...
    confidence 100%
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