Philips says reached deal 'in principle' with US over sleep machine recall

Philips said Tuesday it has reached a deal “in principle” with U.S. authorities to resolve a long-running case involving faulty sleep machines. The company has faced years of fallout tied to recalls of its DreamStation devices used for sleep apnea, after concerns that users could inhale particles from noise-cancelling foam and possible cancer risks. In presenting its third-quarter results, Philips said it reached an agreement in principle with the U.S. Department of Justice to settle previously disclosed criminal and civil investigations related to the recall. Philips set aside €288 million ($322 million) in the third quarter, with payment expected in the first quarter of 2027, and said the settlement depends on final paperwork. The provision reduced third-quarter profits to €28 million, from €187 million a year earlier.