Philips Wins Dutch Court Ruling on Recall Inquiry, but US CPAP Sales Ban Persists
A Dutch appeals court rejected a shareholder request for an inquiry into how Koninklijke Philips handled its 2021 sleep-apnea device recall. The decision removes a governance challenge but does not resolve the company's US restriction on selling new CPAP and BiPAP machines. Philips has recovered to a profit in 2025, though earnings remain below pre-recall levels, and its US sleep-market position remains constrained.
The Amsterdam Court of Appeal’s Enterprise Chamber declined the shareholder inquiry. It concluded there was no evidence Philips learned of the foam issue well before its public warning and no basis to say management should have acted sooner at Respironics. Philips rejected the allegations and welcomed the outcome, though French prosecutors continue to investigate.
The 2021 recall involved roughly 15 million devices. Philips posted net losses totaling $2.96 billion from 2022 through 2024 and agreed to a $1.1 billion US settlement in 2024. It earned $1.05 billion in 2025, still about 28% below 2020’s $1.45 billion.
The court outcome may mainly affect governance confidence, not device access. US patients needing CPAP/BiPAP could still face fewer Philips options while the consent decree blocks new sales, potentially leaving ResMed with greater market influence. That may shape prices, choice, and innovation over time. Philips investors and employees may continue to face uncertainty until FDA clearance arrives, though the company’s return to profit could soften some concerns.