Philips faces new court case in Amsterdam over sleep apnoea

The Dutch shareholders’ association VEB has asked the company court at Amsterdam’s appeal court to investigate Philips’ handling of its defective sleep apnoea devices.

The move comes three years after the VEB first held the medical technology company liable for investor losses linked to the recall of millions of breathing devices in 2021.

Philips has recalled 5.5 million machines and 17 million sleep masks worldwide after it emerged that tiny foam particles could be released during cleaning and then inhaled, while magnetic clips in the masks potentially interfere with heart pacemakers.

Philips’ share price collapsed from €50 to below €20, with the VEB estimating investor losses at €16 billion.

The association said Philips failed to inform the market in time. “The VEB wants clarity on the facts and circumstances that led to misleading and delayed statements,” it said in a statement.

“It is stil not clear how Philiip’s internal checks could have failed so seriously, why the board did not monitor its subsidiaries sufficiently and why the supervisory board failed its tasks.”

The request, according to the Financieele Dagblad, is a sign that talks on a settlement between the two sides have broken down.

Philips is already facing a series of lawsuits in the United States, where investors are also demanding damages. In Europe, at least six parties have filed liability claims.

The Enterprise Chamber is a special division of the Amsterdam Court of Appeal that deals with corporate disputes and governance issues. It has the power to order independent investigations into company policy and management decisions, and its rulings can lead to measures ranging from leadership changes to the annulment of decisions.