CPAP maker agrees to pay $479 million after 10.8 million devices were recalled

CPAP device maker Royal Philips will pay out hundreds of millions of dollars to device users as part of a settlement agreement.

The announcement came September 7 as Royal Philips agreed to pay out at least $479 million to people who used certain sleep apnea treatment devices in order to settle a class action suit brought by users.

Though Royal Philips agreed to the payout amount, the company did not admit to any wrongdoing.

Following approval by the US District Court for the Western District of Pennsylvania, Royal Philips expects to begin making the payouts to users no earlier than the first quarter of 2024.

“The agreement, which is subject to approval by the court, will provide predefined cash awards to all eligible participants in the US depending on the type of device, extended warranties on all replacement devices, and an additional cash award if they return the recalled device to Philips Respironics. The settlement will further compensate certain individuals who acquired replacement devices post-recall,” the company said in a blog post.

In June 2021, Royal Philips issued a voluntary recall for approximately 10.8 million Bi-Level PAP, CPAP, and medical respirator devices for a possible cancer risk due to sound-dampening polyester-based polyurethane foam used in the devices which could degrade and emit harmful chemicals.

The recall notice said that the inhaled foam could cause “headache, irritation, inflammation, respiratory issues, and possible toxic and carcinogenic effects.” 

Following the recall, Oregon based truck driver Gerry Shelton filed a class action lawsuit against Royal Philips. The suit alleged that Shelton was been forced to stop driving trucks because he was not allowed to do so with untreated sleep apnea and he did not have a replacement CPAP device.

While users cannot make a settlement claim yet, this site provides more information on who is eligible for a cash award and how you can claim payment.