Philips Sues SoClean Alleging Ozone Exposure Risks Over Injuries Related To Breathing Devices
Portfolio Pulse from Vandana Singh
Koninklijke Philips N.V. (NYSE:PHG) has filed a lawsuit against SoClean, alleging that SoClean's ozone-based cleaning systems for breathing devices contributed to injuries related to Philips' recalled CPAP, BiPAP sleep therapy devices, and ventilators. Philips is seeking to allocate a portion of its recent $1.1 billion settlement over these injuries to SoClean, claiming at least 15% of users affected by the settlement used SoClean products. The lawsuit also targets DWHP, a private equity firm with investments in SoClean, accusing it of promoting SoClean's products for use with Philips devices despite knowing the risks. Philips asserts that SoClean's systems emitted ozone levels above federal limits and that SoClean was aware of the hazards for years before taking action.
May 14, 2024 | 5:44 pm
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Philips has initiated a lawsuit against SoClean, linking SoClean's ozone-based cleaning systems to injuries from recalled Philips breathing devices. Philips aims to allocate part of its $1.1 billion settlement to SoClean, highlighting the use of SoClean products by at least 15% of affected users. The lawsuit also implicates DWHP, a private equity firm, in promoting SoClean's products for use with Philips devices, despite the risks.
The lawsuit against SoClean could potentially lead to financial liabilities and reputational damage for Philips, as it brings additional attention to the injuries caused by its recalled devices. The negative publicity from this legal action and the association with injuries could impact investor sentiment and Philips' stock price in the short term. However, the attempt to allocate part of the settlement to SoClean might mitigate some financial impact if successful.
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