Martingale Risk – Philips Shareholders Group Action to be Filed in the Netherlands
May 23 2024 - 4:06AM
Business Wire
Martingale Risk, a specialist in global securities loss
recovery, is originating a group action in the Netherlands against
Philips on behalf of institutional investors, together with Grant
& Eisenhofer as the Global Counsel and Old Haven Funding LLC as
the Funder.
As reported by the U.S. regulator, the Food and Drug
Administration (FDA), starting from at least October 2015,
Philips was notified by customer
complaints regarding its respiratory devices (sleep therapy devices
used for the treatment of obstructive sleep apnea) causing
potential health issues related to foam degradation. Upon receipt
of this crucial information, Philips failed
to proceed with any appropriate methods of risk analysis and to
implement any corrective or preventive actions. Shareholders
were not provided with any details regarding the severity of these
matters nor the extent that Philips would be
harmed financially, which in 2022 already resulted in €486
million in utilized provisions.
Following the June 14th, 2021 recall on millions of respiratory
devices to address the health risks related to the foam, the
FDA – that classified the recalls as
Class I, the most serious type of recall – moved to swiftly investigate Philips, closing
their investigation with several critical
observations.
In response to an updated safety communication by the FDA, on
Sept. 7th, 2023, Philips agreed to pay out at
least $479 million to US consumers, as a means of managing
and compensating for the health issues caused by its respiratory
devices.
On April 4th, 2024, the FDA and the Department of Justice (DoJ)
made a joint statement acknowledging Philips’ supposed failure to
abide by the instructions and procedures of the remediation plan.
This led to a recent Court-approved Consent
Decree of Permanent Injunction (filed on April 9th, 2024),
whereby Philips’ respiratory devices can no longer be manufactured
or distributed from its US facilities, until they comply with
various stringent reparative duties, as specified in the Recall
Remediation Plan.
The finalization of the Consent Decree is undoubtedly a
significant milestone for the protection of US-based consumers, yet
action is still needed to further redress
Philips’ misconduct, namely for institutional investors who
purchased its equities, which were greatly impacted by
Philips’ behavior. Martingale Risk, as the originator of the group
action, will bring the proceedings in the Netherlands to recover
its clients’ investment losses, which occurred throughout the
period Nov. 2015-Nov. 2021.
Terms & Conditions:
Martingale Risk, together with Grant & Eisenhofer and Old
Haven will be operating on a full contingent fee basis of the
recovered amount as all legal, expert costs and expenses will be
covered.
How to Proceed/Registration
Deadline:
If your firm has invested or traded in Philips common stock
and/or ADR from Oct. 30th, 2015-April 24th, 2023, please contact
Mr. Marco Delzio (marco.delzio@martingalerisk.com) or Mr. Peter
Ogden (peter.ogden@martingalerisk.com) for a free non-binding
preliminary analysis.
The deadline to register for the proceedings is July 31st,
2024.
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