Beyond Economic Claims Philips Now Settling Personal Injury Cases
Philips has announced they will settle personal injury claims related to their CPAP devices. Personal injury claims payouts will total over $500 million, which is in addition to the $479 million in economic claims they agreed to pay last year.
The economics claims settlement (which was agreed to last year) totaled $479 million to reimburse people who incurred out of pocket expenses to replace their CPAP devices themselves and other expenses related to replacing their recalled CPAP devices.
This latest settlement (just announced in 2024) is for individuals who claim they suffered or are suffering, physical ailments caused by improper materials used in the manufacturing of their CPAP devices.
This settlement is the conclusion of the long saga of Philips CPAP. It does however seem unlikely this is the last lawsuit we will see around CPAP devices. It is often the case in class action lawsuits that when one manufacturer is sued because of a faulty device, other lawsuits follow for the other makers of similar devices.
If you would like to read about the entire history of the Philips CPAP litigation, please read our in-depth article: Philips CPAP Lawsuit.
In their Q1 report to shareholders, Philips mentions the settlement, but admitted “no fault”:
“Philips and plaintiffs’ leadership have reached an agreement, following a mediation with Judge Diane M. Welsh, to resolve the personal injury litigation and the medical monitoring class action to end the uncertainty associated with litigation in the US. Philips and Philips Respironics do not admit any fault or liability, or that any injuries were caused by Respironics’ devices.”
– Source: Philips First Quarter Results Report
Philips also said that product liability insurance would cover a large portion of the payouts and the rest would pay for this from their cash flows, which means in essence, that they will pay cash to fund the settlement.
Philips also said in their Q1 report that they expect payments to go out in 2025. Lawyers who have been working on this settlement on behalf of their clients may be interested in post settlement funding to help recoup some of the attorneys’ fees they are owed rather than waiting until 2025 to receive their fees. Post settlement funding for lawyers is a financial vehicle that allows attorneys to sell some of the contingency fees they are owed to a finance company to get an advance on their attorney’s fees.
Summary – Philips CPAP Lawsuit Update May 2024
There are many manufacturers of CPAP machines, and it is estimated that there are over 33 million people in the United States alone use CPAP machines. People depend on these devices to operate properly, and safely as they require their use to relieve/prevent the long term health consequences of sleep apnea.
Claims initially included a failed product recall that ended up costing people money out of their own pockets. Then came the personal injury claims from injuries sustained using faulty CPAP products. The Philips CPAP Lawsuit will end up costing Philips and its shareholders over $1 billion in total damages.
This lawsuit has taken several years to wind its way through the courts, but it appears as of today that Philips will settle these claims (without admitting any wrongdoing) and make payments from cash flow as well as from their insurance carrier to pay plaintiffs.
With over 33 million CPAP users in the United States alone, it seems unlikely we have seen the end of litigation surrounding CPAP devices.
More About Post Settlement Funding from Balanced Bridge Funding
Does Balanced Bridge Funding offer Pre-Settlement Funding as well as Post Settlement Funding?
Balanced Bridge does not offer pre-settlement funding solutions for Attorneys at this time. We do offer post settlement funding; meaning, once your case has settled or concluded, and you are owed attorneys fees, we can offer you a settlement advance (if you qualify). But no, we do not offer pre-settlement funding options at this time.
Post Settlement Funding is a Non-Recourse Transaction
What if a defendant can’t pay – do I have to pay back my post settlement funding advance?
No, you do not. Post settlement funding is a non-recourse transaction. This means you don’t need to worry about what might happen if the defendant suddenly can’t pay your contingency fees — we accept all risk of non-payment, meaning that you will still get to keep the money from your settlement advance if the defendant goes bankrupt or is unable to pay for whatever reason.
Fast, Hassle Free Post Settlement Funding Application
In most cases, we can get your money in your hands in one week or less. Our application is simple, straightforward, and easy to complete. CLICK HERE to get started. Remember, this isn’t a loan, so there isn’t as much paperwork to go through. In most cases, we can approve your application and have your money deposited into your checking account in a matter of days.
To talk to one of our legal funding specialists about post settlement funding, please call (267) 457-4540 or email: info@balancedbridge.com. Or simply CLICK HERE to complete our fast application.
