Partial Economic Loss Settlement Reached in CPAP Class Action

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We are pleased to announce that we have partially settled the class action with Philips, subject to court approval. The partial settlement only covers economic losses, meaning that you will only be compensated for your expenses associated with the recall or for obtaining replacement devices. The settlement does not cover personal injuries. That part of the class action continues (discussed below).

The parties only came to this agreement (contract) on February 20. We were not permitted to share any details of the confidential negotiations with class members until the Partial Settlement Agreement was filed with the British Columbia Supreme Court. We did this on February 21 and now can provide class members with this much awaited update.

We will be hosting a series of virtual town hall meetings to provide class members more information on the terms of the partial settlement. Stay tuned for more details on when those town halls will occur, and how to register.

The Partial Settlement

Here is a brief summary of the partial settlement. In total, Philips will pay $20,000,000 to settle economic loss claims. Class members will not get all of this money because it must also pay for the cost of administering the settlement as well as court-approved legal fees and expenses.

Compensation to Individual Class Members

Each class member may be eligible for compensation of up to:

• $125.00 for each Recalled Product that you purchased or owned, plus
• a portion of the amount you spent on a replacing a Recalled Product (“replacement device”).

The amount of compensation you will receive for a replacement device depends on the age of your Recalled Product at the time of the Recall:

• If your Recalled Product was less than 3 years old at the time of the Recall, you will be eligible to receive up to 90% of the Comparable Device Cost.
• If your Recalled Product was more than 3 years old but newer than 5 years old at the time of the Recall, you will be eligible to receive up to 70% of the Comparable Device Cost.
• If your Recalled Product was 5 years or older at the time of the Recall, you will be eligible to receive up to 30% of the Comparable Device Cost.

Comparable Device Cost has been defined by the average costs of the three classes of Recalled Products:

• For the replacement of a Recalled Product that was a CPAP: $1,200
• For the replacement of a Recalled Product that was a BiPAP: $2,500
• For the replacement of a Recalled Product that was a ventilator: $11,835

Depending on the number of class members who make claims, those amounts may be reduced (or increased) proportionately.

This partial settlement is not binding until it is approved by the court. A more detailed notice will be published after the British Columbia and Québec Courts approve the contents of the notice. In the meantime, the settlement agreement can be found here.

The Personal Injury Claims

This settlement does not cover personal injuries, which have not been resolved. We will continue to aggressively advance those claims and will provide further status updates as that part of the claim moves forward.

Next Steps

Dates for the settlement approval hearings will be scheduled with the British Columbia and Quebec Courts and will be provided in the official notice.

The official notice will also explain how to opt out of this settlement, and how to object.