Philips CPAP Investors Lodge Class Action for False Reports, Investment Losses

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Philips CPAP Investors Class Action Lawsuit Overview:

• Who: Investors filed a class action lawsuit against Philips, a company that makes CPAP machines.
• Why: The plaintiff claims he and others suffered investment losses due to false and misleading information published and spread by Philips executives regarding their recalled CPAP machines. 
• Where: The class action lawsuit was filed in New York federal court.

Investors are hoping to recover their losses in a class action lawsuit against the company Koninklijke Philips, which recalled millions of Philips CPAP machines this summer, and its top executives, filed on Monday. 

Lead plaintiff, Subhash Patel, filed the lawsuit on behalf of other individuals or entities that purchased Philips securities between Feb 25, 2020 to June 11, 2021. Patel accuses Frans van Houten, Philips’ chief executive officer and chairman of the Board of Management and the Executive Committee, and Abhijit Bhattacharya, Philips’ chief financial officer and a member of the Board of Management and the Executive Committee, of knowingly publishing false and misleading reports of the company’s performance and earnings. 

Such actions are violations of federal securities laws that prohibit fraudulent securities practices and impose liabilities for parties that do commit fraud. 

CPAP Company Philips False Reports Caused Significant Losses 

Believing Philips to be a valuable investment, the plaintiff bought shares in the company, only realizing months later that his buying price was artificially inflated. The plaintiff maintains that had he and other investors “known the truth, they would not have purchased or otherwise acquired said securities” or at least at those prices. 

The plaintiff claims that, given their high-ranking positions, van Houten and Bhattacharya had access to company information unavailable to the public, chose to conceal the “adverse facts” and their knowledge of them, and failed to prevent the release of misleading and false reports. 

Specifically, the plaintiff claims that the defendants failed to disclose the company’s deficient manufacturing processes and hazardous products, including the recalled Philips CPAP machines. From there, it is alleged the executives would have also known that the company’s revenues would take a hit, thus affecting its stocks. 

The Philips CPAP investor class action lawsuit is seeking payment of damages, interest, attorneys’ fees, expert fees and other costs. 

CPAP Company Philips Recalls Millions of Machines 

Not only did company executives allegedly intentionally defraud investors, but the company’s products were also found to pose severe health risks, according to class action lawsuits lodged by Philips CPAP users. 

On June 14, 2021, after almost four months of positive manufacturing and earnings reports, Philips voluntarily recalled certain CPAP, Bi-Level PAP, and ventilator devices that it had manufactured. Philips found that the foam used in the devices used to lessen noise could degrade and be inhaled or ingested by the user. This degradation could also cause the foam particles to become toxic and possibly carcinogenic. 

Did you experience losses due to Philips CPAP recall? Were you affected by its product recall? Let us know in the comments below!

The plaintiff is represented by Jeremy A. Lieberman, J. Alexander Hood II, and Thomas H. Przybylowski of Pomerantz LLP.

The Philips CPAP Investor Class Action Lawsuit is Patel v. Koninklijke Philips N.V., et al., Case No. 2:21-cv-04597, in the U.S. District Court for the Eastern District of New York.

Read About More Class Action Lawsuits & Class Action Settlements:

• Do You Qualify: Philips CPAP Machine Recall Lawsuit Investigation
• CPAP Recap: Philips Recall ‘Most Serious,’ CPAP Class Action Lawsuits Mount
• CPAP Recap: Consumers Launch Class Actions After Philips ‘Toxic’ BiPAP and CPAP Machines Recall
• Philips Knew of CPAP Problems Before Recall, Claim Class Action Lawsuits