As of July 2024, there are 795 pending cases in multidistrict litigation concerning injury claims related to recalled Philips CPAP machines.

If the settlement is not approved, bellwether trials in the Philips CPAP multidistrict litigation could take place in 2025 for lawsuits alleging that the devices caused cancer and other health issues. Senior U.S. District Judge Joy Flowers Conti will oversee all federal CPAP lawsuits against Philips.

The influx of new cases in the CPAP class action MDL is noticeably slowing. In April, 25 new cases were added, but this month saw only 5 additions, bringing the total number of pending cases to 792.

The CPAP settlement agreement was released. Here are some key highlights:

Eligibility Criteria

To qualify for the $1.075 billion settlement, claimants must be U.S. citizens who were either represented by a lawyer before April 29, 2024, or are pro se victims who have already brought a claim. Only those who have used the recalled devices are eligible to participate in the settlement.

Legal and Court Procedures

Following the agreement’s execution, lawyers and pro se litigants must promptly identify themselves or their clients as eligible claimants. There is a strict 30-day deadline to submit declarations for identifying eligible claimants after the court order. Lawyers must declare all eligible claimants they represent within this timeframe. Failure to do so renders claimants ineligible unless an exception is agreed upon.

Settlement Distribution Timeline

The CPAP settlement disbursement is scheduled for 2025. Philips will initially contribute $25 million to the fund within 14 days of the MSA’s execution to cover administrative costs. By January 6, 2025, Philips will deposit the remaining $1.05 billion into the Settlement Fund, provided certain conditions are met. If all goes as planned, claimants should receive their money in 2025.

Opting Out

Claimants have the option to opt out of the settlement, though it will be challenging to find legal representation. Opt-out plaintiffs who miss the registration deadline may face case dismissal if they fail to meet specific requirements, such as producing detailed medical records, evidence of device usage, and causation within 60 days of opting out. Producing expert reports to support their claims within 90 days will be particularly difficult. If all initial requirements are met, the court will establish further deadlines for additional discovery and motions. Realistically, few plaintiffs are likely to reach this stage.

Medical device maker Philips reported that it has reached an agreement with plaintiffs’ leadership following a mediation with Judge Diane M. Welsh, to resolve the personal injury CPAP litigation and the medical monitoring class action to end the uncertainty associated with litigation in the US.

The company maintains that Philips and Philips Respironics do not admit any fault or liability, or that any injuries were caused by Respironics’ sleep therapy devices.

According to Philips, the settlement addresses the claims filed in the US courts and potential claims submitted to the census registry. Under the settlement, Philips Respironics has agreed to pay a total of USD 1.1 billion.

The related payments are expected in 2025 and will be funded from Philips’ cash flow generation.

The Philips CPAP recall MDL experienced a slight growth, with 14 new cases added over the past month. This increase brings the total number of pending cases to 762, up from 755 at the start of the year.

Both plaintiffs’ and attendants’ attorneys handling CPAP medical monitoring cases issued a Preservation Order for the recalled Philips medical products and similar devices related to the Philips CPAP lawsuits. This order aims to guarantee a just assessment of the condition of the respiratory devices as required for the defense of all parties’ respective cases.

Anticipation for a settlement in the Philips CPAP lawsuits is high, with expectations for a resolution in late 2024 or early 2025, as publicly stated by Philips CEO.

The CPAP recall class action MDL has slowed in new cases, while lawyers representing consumers in the faulty ventilator issue have requested $95 million in fees from a settlement agreement amidst ongoing legal complexities, including claims of product damage by SoClean’s cleaners.

Philips faces legal challenges over their product recalls, arguing against plaintiffs’ demands for a mandatory recall, which they believe exceeds federal law requirements. The company is under pressure to ensure product safety while managing potential substantial settlements for personal injury and wrongful death claims.

The Philips CPAP recall class action MDL, after experiencing a rapid 300% increase in case numbers over the year, unexpectedly saw a decrease of 42 cases this month, leaving 742 cases pending.

In related developments, Philips’ motion to dismiss various plaintiffs’ claims was challenged by a Special Master’s recommendation, which the MDL Judge is likely to side with, potentially marking a significant legal hurdle for Philips.

Philips Respironics has recalled V60 and V60 Plus Ventilators due to identified flaws, impacting a total of nine ventilators distributed between the U.S. and the Philippines to treat sleep apnea, with no reported injuries or deaths—a contrast to the issues arising from the Philips CPAP machine recall.

Meanwhile, the CPAP sleep apnea machines recall lawsuit MDL continues to grow, with a slight decrease to 70 new cases last month, and Philips has proposed a settlement agreement of at least $479 million.

Philips agreed to pay nearly $500 million to settle a part of the litigation related to the 2021 sleep apnea machines’, which specifically addressed economic losses. Analysts suggest Philips could face settlements amounting to $4.5 billion for personal injury claims associated with the recalled devices.

A new CPAP wrongful death lawsuit, Morey v. Philips North America LLC et al., was initiated in California, with claims attributing cancer from the PE-PUR foam in the recalled devices as the cause of death. There were 698 ongoing cases in the various CPAP recall lawsuits and class action MDL against Philips, with 25 new cases introduced in the last month.

After Tepezza hearing damage lawsuits were consolidated into a new class action MDL, only one additional case was registered, bringing the total to 42. The slow initiation rate is considered typical for newly created class action MDLs.

30 more CPAP injury lawsuits were added to the class action MDL, bringing the current count to 548 Philips CPAP lawsuit cases. The low case number was attributed to Philips’ claims registration programs introduced at the litigation’s onset.

Between March 15 and April 15, 64 new Philips CPAP lawsuits were added, marking the highest monthly volume since the litigation’s beginning, with a total of 518 by mid-May.

Recent increases in the filing of new Philips CPAP lawsuits in the MDL were due to procedural changes and the end of Philips’ registration program, highlighted by a case filed by Deidra Jackson Holmes against Philips on May 9, 2023.

Royal Philips allocated an extra $630 million and the previously earmarked $1 billion to settle CPAP lawsuits tied to the CPAP machines recall. The funds are intended for economic damage claims from users of CPAP defective machines who haven’t alleged physical harm.

The company’s CEO, Roy Jakobs, had anticipated settlements for personal injury and wrongful death cases this year or the next.

Plaintiffs responded to Philips’ motion to dismiss, emphasizing that the Master Complaint and Short Form Complaints in the MDL were mutually agreed upon for efficient case handling.

The response further highlighted that historically, MDL judges have been lenient, and defendants bear the burden of proving preemption, especially for products marketed through the less rigorous §510(k) clearance process.

62 new cases were added to the Philips CPAP recall class action litigation in the past month, a significant increase from the monthly average of 9 new cases last year. With the claim registration program having ended recently, the uptick in case filings is expected to continue, and it’s predicted that the MDL will exceed 1,000 pending cases by the end of 2023.

Philips announced plans to eliminate over 6,000 jobs as a measure to regain profitability. This decision came in the wake of the company’s struggles following the extensive recall of its CPAP devices.

Earlier in the month, a new CPAP machines recall lawsuit was filed, Braverman v. Koninklike Philips N.V., which alleges that inhalation of toxic foam particles from the CPAP machines led to the plaintiff’s mouth and tongue cancer, marking a unique claim in the ongoing litigation