Investor Claim Against Philips Launched
On February 6, 2025, Rubicon Impact & Litigation sent a demand letter to Koninklijke Philips N.V. on behalf of more than 100 institutional investors who suffered damages due to Philips’ failure to disclose the health risks associated with its CPAP and Bi-PAP respiratory devices.
In 2021, it came to light that the Continuous Positive Airway Pressure (CPAP) and Bi-Level Positive Airway Pressure (Bi-PAP) machines produced by Philips were associated with a number of health concerns. These devices, widely used to treat sleep apnea and other respiratory conditions, contain polyester-based polyurethane (PE-PUR) foam to minimize noise. It quickly became evident to Philips that this foam could degrade into carcinogenic particles, posing serious health risks to users, including headaches, dizziness, irritation, and even cancer-related fatalities. However, it was not until April 2021 that Philips finally and cautiously disclosed these health risks in its quarterly results and began recalling the faulty devices—despite being aware of these risks long before then. Philips failed to disclose these dangers to the public, regulators, or investors. Instead, the company continued manufacturing, marketing, and selling these devices, generating substantial profits.
The investors’ claims are based on Philips’ failure to disclose critical health risks associated with its CPAP and Bi-PAP devices. The consequences for Philips’ shareholders have been severe. Between April 2021 and January 2024, Philips’ stock price dropped multiple times following various recalls and disclosures about regulatory investigations. In total, the company’s market capitalization plummeted by nearly EUR 28 billion over this period, causing significant losses to its shareholders, including the group currently represented by Rubicon Impact & Litigation.
With the demand letter, the investors have taken the first step toward claiming the damages they have suffered due to Philips’ failure to disclose material information.
The investors are represented in this matter by DRRT, a boutique international law firm, litigation funder, and class action claims filing service provider specializing in securities litigation. DRRT assists some of the world’s largest institutional investors in their global loss recovery efforts.
For press inquiries, please contact:
Frank Peters (peters@rubiconlitigation.com)
Anita van Wees (vanwees@rubiconlitigation.com)