Philips shares jumped more than 35% in trading on Monday, April 29, after the Dutch medical device company agreed to a $1.1 billion settlement in a U.S. lawsuit related to the recall of some of its devices used to treat sleep apnea.
Millions of devices were recalled in 2021 over concerns that components in them carried a potential cancer risk.
The company revealed today that it has set aside €982 million ($1.1 billion) for personal injury compensation, saying the settlement would end uncertainty over litigation surrounding the company.
Philips also confirms that it does not accept any errors or liability resulting from the use of Respironics devices.
Meanwhile, the company reported losses of €998 million ($1.07 billion) in the first quarter of this year.
Adjusted earnings beat Reuters expectations of 388 million euros. Revenues fell slightly to 4.14 billion euros from 4.17 billion euros in the comparable period of 2023.
