Philips booked a 288 million euro provision in the third quarter for a proposed settlement with the US Department of Justice, about $322 million. It covers the investigations tied to the 2021 recall of its sleep and respiratory care devices. Respironics reached an agreement in principle, and CEO Roy Jakobs said the deal came together "in the last few days."
Nothing is final. The settlement still needs final documentation, and Philips expects to pay in the first quarter of 2027. A separate investigation by US state attorneys general is still running, and Philips has booked nothing for it. Jakobs said those talks continue and that it is too early for detail.
The recall covered millions of devices over sound-reducing foam that could degrade. Philips reported third quarter comparable sales of 4.39 billion euros, up 3 percent, and adjusted EBITA of 569 million euros, up 7.2 percent. Both figures exclude recall costs and other items.
Five years from recall to a provision, with the state investigation still open, is the timeline to cite the next time a design review treats a foam selection as a minor call.