Philips wins court battle over devices recall

According to The Express Tribune, a Dutch court ruled on Saturday against a demand from Philips shareholders for an inquiry into alleged misleading disclosures and management failures tied to the sleep apnea device recall. The Enterprise Chamber of the Amsterdam Court of Appeal said it had found no sign that Philips knew about the problems long before issuing any warning. It also saw no reason to believe executives should have stepped in sooner at Respironics, the subsidiary that manufactured the devices.

Shareholders had argued that Philips executives responded too slowly to problems behind the large recall and did not properly inform investors. Around 15 million sleep apnea devices were recalled in 2021 after the company found that foam inside them could release harmful substances. In that period the company's share value dropped by roughly two-thirds, and Philips denied the accusations and welcomed the decision.