To-be-filed litigation in €32 billion market-cap wipeout tied to undisclosed toxic-foam defects in Philips respiratory devices
Plaintiff(s):
Institutional investors (prospective class)
Case type / claims:
Securities and governance action alleging that Philips and former board members concealed critical safety information about deteriorating polyurethane foam in respiratory and sleep-therapy devices, misleading investors and the public about product safety and regulatory risks. Philips was aware of the problem in 2015 yet chose to suppress the mounting evidence.
Defendant(s):
Koninklijke Philips N.V. and former board members
Jurisdiction:
The Netherlands
Outcome:
- Dutch action is being initiated on behalf of investors following revelations of toxic, carcinogenic foam degradation and Philips’ failure to disclose risks known since 2015.
- Over €32 billion in market capitalization has been lost, reflecting the scale of alleged nondisclosure and governance failure.
- In January 2024, Philips entered a provisional agreement with the U.S. Food and Drug Administration and the U.S. Department of Justice underscoring the severity of regulatory violations.
- The provisional agreement made with the U.S. FDA and U.S. DOJ was finalized and entered by a U.S. federal court as a permanent injunction in April 2024.
- G&E has also represented thousands of individual clients harmed by Philips’ negligence in related U.S. product liability class actions.
