To obtain 540 mln eur from insurers (Il Sole 24 Ore Radiocor) - Amsterdam, 29 Apr - The Dutch media equipment and electronics group Philips said that it has reached a 1.1 billion dollar settlement in the US regarding a litigation concerning its Respironics business The payment is expected in 2025 and will be funded from Philips' cash flow generation. As a consequence, a 982 million euro provision was recognized in the first quarter of 2024.

Philips also concluded an agreement with insurers to pay the Dutch group 540 million euros to cover Respironics recall-related product liability claims. The income is expected to be recognized in the second quarter of 2024 and payment is expected during 2024.

"Following the remediation of sleep therapy devices and the reassuring test results to date, these important milestones on litigation, the consent decree and insurance provide Philips with a clear path forward for sustainable value creation," the company added.

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(RADIOCOR) 29-04-24 08:35:06 (0112) 5 NNNN