Philips wins Dutch court battle with shareholders over sleep apnea recall

A Dutch court has dismissed shareholders' demands for an investigation into Koninklijke Philips NV's handling of its 2021 sleep apnea device recall, siding with the health technology company. The Enterprise Chamber of the Amsterdam Court of Appeal found no sufficient grounds to question Philips' policies or management practices that would justify an inquiry.

The shareholders, including Dutch investors association VEB and a large group of retail and institutional investors, had argued that Philips' internal controls failed to identify and address problems with the recalled devices promptly. They also alleged that the company's board knew, or should have known, about the risks before they became public, and that its disclosures breached legal obligations and misled investors.

The court ruled there was no evidence that Philips' executive and supervisory boards received reliable information about the health risks from the foam used in the devices too late.

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