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Philips In More Hot Water Over Respirator Recalls
French prosecutors have opened a preliminary investigation into the firm's massive recall, according to a report from Reuters.
September 9, 2022
2 Min Read
Image courtesy of Eric D ricochet69 / Alamy Stock Photo
Philips recall problems keep multiplying. This time the Amsterdam, Netherlands-based company is facing a preliminary investigation into its respiratory device recall from French prosecutors, according to a report from Reuters.
Philips is already in confidential discussions with the U.S. Department of Justice regarding a possible agreement related to the company's massive recall of sleep apnea and ventilator machines.
Reuters, quoting a text from a spokesperson at the Paris public prosecutor’s office, reported that “as of June 20, 2022, complaints [have been] filed on the grounds of aggravated deception, involuntary attacks on physical integrity, endangerment of life of others, and administration of harmful substances.”
The investigation comes as long-time Philips CEO Frans van Houten is preparing to step down from the position, he’s held for more than 11 years. Philips said that Roy Jakobs, head of its connected care business, will be van Houten’s successor.
“I aim to build on the company’s strong foundation as a purpose-driven health technology leader with deep innovation and clinical expertise, to serve the needs of patients and consumers today and in the future,” Jakobs said in a release. “I look forward to working with Philips’ teams across the world to deliver a strong value creation trajectory for shareholders and all our other stakeholders.”
Philips said there will be a shareholders meeting held on September 30, to appoint Roy Jakobs as President and CEO, effective October 15th.
The move also comes at a time when ResMed, Philips competitor in the sleep apnea device space is seeing a huge spike in revenue growth. ResMed reported fiscal year 2022 revenues of about $3.58 billion, representing 12% growth over 2021 revenues. The company's fiscal year ended June 30.
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