Philips Shares Soar After $1.1B US Legal Settlement

Philips shares surged 46% to a two-year peak on Monday after the company announced a $1.1 billion settlement of U.S. lawsuits over its recalled sleep apnea devices.

In 2021, Philips recalled millions of units due to potential cancer risks from certain components. Despite the hefty payout, Philips' CEO, Roy Jakobs, assured that patient safety remains a top priority, and the remediation process is nearly complete with no significant health threats identified so far.

Additionally, Philips reported a first-quarter loss of 998 million euros, with sales slightly down from the previous year. However, their adjusted earnings surpassed analyst expectations, showing resilience amid financial setbacks.