Philips avoids investigation into sleep apnea device scandal

The Amsterdam Enterprise Chamber (Ondernemingskamer) has rejected requests from the VEB and numerous investors to launch an investigation into Philips regarding its involvement in the sleep apnea device scandal.

Investors had alleged that the Philips board of directors was aware of issues with the devices much earlier than publicly disclosed, or should have been aware, necessitating earlier intervention at its American subsidiary, Respironics. The claimants also argued that the supervisory board failed in its oversight and that the company misled investors by failing to meet legal disclosure obligations.

The court ruled that there were no grounded reasons to doubt the company's policies or procedures that would justify an investigation. After reviewing an extensive dossier, the court found that Philips' internal systems meet international standards, are regularly audited, and have been strengthened over time. The ruling noted that reliable research data indicating health risks only became sufficient during the early months of 2021.