Philips shares jump 35% after a lawsuit settlement in America

Shares of Philips Medical Devices jumped more than 35% after the company agreed to a $1.1 billion settlement in an American case linked to the recall of some of its devices used to treat sleep apnea.

Millions of devices were recalled in 2021 due to concerns that the components in them carry a potential risk of cancer.

The company revealed today that it has allocated 982 million euros for personal injury compensation, indicating that the settlement will end the uncertainty regarding litigation surrounding the company. It also confirmed that it did not acknowledge any errors or liability resulting from the use of Respironics devices.

The company announced losses worth 998 million euros in the first quarter of this year. Adjusted profits exceeded Reuters expectations of 388 million euros. As for revenues, they decreased slightly to 4.14 billion euros from levels of 4.17 billion euros in the comparison period of 2023.