Amsterdam, November 6, 2025
More than 100 institutional shareholders have initiated legal proceedings against Koninklijke Philips N.V., claiming nearly EUR 1 billion in damages stemming from the company's inadequate handling of the "apnea affair" involving defective respiratory devices.
Since 2009, Philips sold millions of CPAP and Bi-PAP devices through its U.S. subsidiary Philips Respironics containing polyurethane foam that degraded into toxic, potentially carcinogenic particles. The company recalled over 15 million devices in 2021 and ceased manufacturing in April 2024 after reaching a Consent Decree with the FDA and Department of Justice. The crisis resulted in over EUR 1.5 billion in consumer payments, billions in lost future sales, and wiped out over EUR 28 billion in shareholder value.
Dutch litigation boutique Rubicon Impact & Litigation has issued the writ following a February 2025 demand letter and unsuccessful settlement negotiations. The shareholder group also previously sent Philips a draft objection notice, warning that they may seek a mismanagement determination at the Amsterdam Enterprise Chamber concerning inadequate quality management for a healthcare manufacturer. Over 30 additional shareholders representing EUR 500 million in claims are preparing to join.
Shareholders allege Philips systematically downplayed, ignored, and concealed hazardous conditions while continuing to book substantial revenues from 2009 through 2024 without implementing proper quality control and safety procedures.
According to FDA and DOJ reports, Philips identified risks by 2015 but failed to warn shareholders about the potentially unsustainable business line. Only in April 2021 did Philips acknowledge safety concerns, mentioning a "quality issue" and making just a EUR 250 million provision. The complaint contends the apnea affair reflects systemic deficiencies in Philips' quality assurance and risk management.
The shareholders seek compensation for breach of fiduciary duty, gross negligence in quality governance, and market manipulation through misleading disclosures.
"This is the next step in seeking compensation for Philips' failure to disclose key information that materially impacted the share price," said DRRT Managing Partner Joseph Gulino. "These shareholders trusted Philips' transparency and integrity as a publicly listed company and deserve restitution for losses stemming from the company's erosion of market transparency, suppression of consumer complaints, cultural tolerance for regulatory violations, and fundamental failure to maintain quality standards appropriate for a healthcare company."
About DRRT: DRRT is a boutique international law firm, litigation funder, and class action claims filing service provider in the securities litigation area, assisting the world’s largest institutional investors in their global loss recovery efforts. For over 20 years, DRRT has successfully recovered billions for investors in cases such as Ageas/Fortis and Steinhoff in the Netherlands, Royal Bank of Scotland in England, Hypo Real Estate in Germany and Olympus in Japan.
About Rubicon Impact & Litigation: Rubicon Impact & Litigation is an Amsterdam-based law firm specialized in high-stake corporate, commercial, ESG and class action cases. Founding Partner, Frank Peters and Partner Michelle Krekels have been involved in several large group or class actions in the Netherlands, lastly in the €1+ bn settlement of Dutch/South African retail giant Steinhoff. Rubicon works for businesses, institutions, NGOs, and consumers in Dutch collective action cases that make a difference.