Philips sets aside €288 million for U.S. justice settlement
The planned payment is included in third-quarter results, as CEO Roy Jakobs highlights AI’s role in speeding medical imaging.
Key takeaways
- Philips plans to pay €288 million to the U.S. government in a settlement.
- The settlement provision was included in Philips’ third-quarter results.
- CEO Roy Jakobs says AI can cut some MRI scan times from sixty minutes to 30.
Philips is preparing to pay €288 million to the U.S. government to settle a case involving its sleep apnea devices. The company had already set aside the amount in its third-quarter results.
Chief executive Roy Jakobs called the agreement an important step toward putting the legal issue behind the company and returning its focus to innovation. The settlement is expected to close Philips’ largest legal dispute over the devices.
Philips recalled millions of sleep apnea machines in 2021 after foam particles came loose. Two years ago, it agreed to pay $1.1 billion to settle claims from U.S. users.
Philips’ third-quarter profit fell to €28 million from €187 million a year earlier. The company’s results included the planned U.S. settlement payment.
Jakobs said AI can help reduce the time needed to produce some MRI images from sixty minutes to 30. Philips shares traded at €25.75, up 5.02% since the previous close, as of 10:17 UTC on November 3.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
