Amsterdam Court Dismisses Philips Shareholder Management Probe
The Amsterdam Court of Appeal dismissed shareholder demands for an investigation into Philips management following the recall of millions of sleep apnea devices.
The Enterprise Chamber of the Amsterdam Court of Appeal dismissed demands from shareholders of Philips for an investigation into management failures and misleading disclosures. Shareholders alleged that executives responded too late to defects in sleep apnea devices and failed to inform investors, which they claimed contributed to a loss of approximately two-thirds of the company's share value.
The court ruled there was no indication that Philips knew of the problems long before issuing warnings or that executives should have intervened earlier at the Respironics subsidiary. While Philips welcomed the ruling, the company remains under legal pressure. French prosecutors are currently investigating the company for aggravated fraud and failure to report safety risks.
These legal battles follow a massive recall of 15 million devices. In 2024, Philips paid $1.1 billion to settle personal injury claims in the United States related to the defective equipment.
