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Dutch shareholders threaten to sue Philips over recall - media

Dutch shareholders threaten to sue Philips over recall - media
Dutch shareholders threaten to sue Philips over recall - media   -   Copyright  Thomson Reuters 2022   -  
By Reuters

<div> <p><span class="caps">AMSTERDAM</span> -Dutch shareholders association <span class="caps">VEB</span> is threatening to take Philips to court over its handling of a global recall of respiratory machines, claiming it caused billions in losses by giving incorrect information to shareholders, Dutch paper FD reported on Monday, citing a letter the <span class="caps">VEB</span> sent to the company.</p> <p>Philips confirmed that it had received a letter from the <span class="caps">VEB</span> on Sunday night, but did not provide any details of its content.</p> <p>“We are convinced that Philips acted in the right and responsible way,” Philips spokesman Steve Klink said, adding that the company was confident it could resolve the issues in a conversation with the <span class="caps">VEB</span>. </p> <p>Philips shocked investors in June last year by recalling millions of respiratory machines used to treat sleep apnea as foam used in the machines could degrade and possibly become toxic.</p> <p>The recall has lopped around 27 billion euros ($27.23 billion) off Philips’ market value in the past 15 months, as investors fear large litigation bills.</p> <p>In the letter cited by FD, the <span class="caps">VEB</span> said Philips is responsible for around 16 billion euros of those losses, by giving false information over the machines affected.</p> <p>It said reports by the U.S. Food and Drug Administration showed that people within the company knew of the problems years before users were informed. </p> <p>The shareholders association expects to file a claim for damages and has demanded to have a meeting with Philips before the end of the month, FD said.</p> <p>($1 = 0.9917 euros)</p> </div>