Archive · 11 Oct 2026
Amsterdam Court Rejects Philips Investor Probe Over Recall
Philips recalled millions of sleep apnea and breathing machines in 2021.
The machines had foam that could break down and release particles that might be harmful.
Some investors asked a Dutch court to investigate how Philips handled the problem.
They said the company should have found and addressed it sooner.
The court said the available health-risk research became reliable only in early 2021.
It found no reason to order the requested investigation into the company’s handling or investor communications.
The court did not decide whether the subsidiary made mistakes or whether investors should receive damages.
Philips welcomed the decision.
The Enterprise Chamber of the Amsterdam Court of Appeal rejected investors’ request for an investigation into Philips’ handling of its 2021 sleep apnea device recall.
Investors argued that weak internal systems delayed detection and action, and that Philips’ board knew about problems at its US subsidiary Respironics earlier than disclosed.
The court said reliable research data indicating health risks from the devices’ PE-PUR foam was not available until early 2021.
The chamber found no basis to conclude that Philips’ boards received information too late, that oversight was insufficient, or that communications to investors were late, incorrect, or misleading.
The ruling did not decide whether Respironics made errors or whether Philips was liable for investor losses; Philips had agreed to a $1.1 billion US settlement in 2024 over related lawsuits.
- Who
- The Enterprise Chamber of the Amsterdam Court of Appeal, Philips, the Dutch investors’ association VEB, and several institutional investors.
- What
- The court rejected investors’ request for an investigation into Philips’ handling of the 2021 device recall.
- When
- The ruling was issued on Saturday; the recall began in 2021.
- Where
- Amsterdam, the Netherlands; the recalled devices were made by Philips subsidiary Respironics in the United States.
- Why
- The court found no sufficient basis for a probe, saying reliable research data indicating health risks from the foam was not available until early 2021.
Investors’ claims
Court’s assessment
When Philips identified and addressed the problem
Investors’ claims
VEB and institutional investors argued that shortcomings in internal systems meant the device problems were identified and addressed too late.
Court’s assessment
The court said reliable research data indicating health risks from the foam did not become available until early 2021 and found no indication the company’s boards received it too late.
Board oversight and investor communications
Investors’ claims
Investors suggested Philips’ board knew about problems at Respironics earlier than the company disclosed them.
Court’s assessment
The chamber found no reason to conclude Philips should have intervened earlier, that supervisory oversight was insufficient, or that investor communications were late, incorrect, or misleading.
- Recall
- Launched in 2021 and involved roughly 3.5 million breathing machines.
- Device issue
- Polyester-based sound-dampening PE-PUR foam could degrade over time, potentially allowing particles to be inhaled or ingested.
- Investors seeking probe
- VEB and several institutional investors.
- Court finding
- The chamber found no basis to conclude that Philips’ boards received health-risk information too late or that its investor communications were late, incorrect, or misleading.
- Limits of ruling
- The chamber did not rule on whether Respironics made errors or whether investors were entitled to damages.
- US settlement
- Philips agreed to a $1.1 billion settlement in 2024 to resolve US class action lawsuits related to the recall.