Dutch shareholders threaten to sue Philips over recall – media

AMSTERDAM (Reuters) -Dutch shareholders affiliation VEB is threatening to take Philips to court docket over its dealing with of a world recall of respiratory machines, claiming it precipitated billions in losses by giving incorrect info to shareholders, Dutch paper FD reported on Monday, citing a letter the VEB despatched to the corporate.

Philips confirmed that it had obtained a letter from the VEB on Sunday night time, however didn’t present any particulars of its content material.

“We’re satisfied that Philips acted in the precise and accountable approach,” Philips spokesman Steve Klink mentioned, including that the corporate was assured it may resolve the problems in a dialog with the VEB.

Philips shocked buyers in June final yr by recalling hundreds of thousands of respiratory machines used to deal with sleep apnea as foam used within the machines may degrade and presumably grow to be poisonous.

The recall has lopped round 27 billion euros ($27.23 billion) off Philips’ market worth up to now 15 months, as buyers concern giant litigation payments.

Within the letter cited by FD, the VEB mentioned Philips is accountable for round 16 billion euros of these losses, by giving false info over the machines affected.

It mentioned stories by the U.S. Meals and Drug Administration confirmed that folks throughout the firm knew of the issues years earlier than customers had been knowledgeable.

The shareholders affiliation expects to file a declare for damages and has demanded to have a gathering with Philips earlier than the top of the month, FD mentioned.

($1 = 0.9917 euros)

(Reporting by Bart Meijer; Enhancing by Tom Hogue and Subhranshu Sahu)