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Dutch medical device company Philips has reached a settlement worth US$1.1 billion (approximately RM5.2 billion) to resolve a US lawsuit against it over malfunctioning sleep machines. The company’s stock price surged more than 33%, showing investor optimism about the settlement.
Philips said in a statement that although it did not admit fault, it was willing to resolve the uncertainty of the lawsuit to ensure patient safety. Although the company laid off thousands of employees and lost RM2.3 billion in 2023, it posted a loss of €824 million on sales of €4.1 billion in the first quarter.
The settlement amount is expected to be paid in 2025, and the company has prepared 982 million euros as settlement funds. Investors and analysts viewed the settlement as significantly reducing legal risks.
(Source: AFP Image source: Unsplash)
