Koninklijke Philips N.V.

Philips’ products for respiratory care include Bi-Level Positive Airway Pressure (“Bi-Level PAP”), Continuous Positive Airway Pressure (“CPAP”) devices and mechanical ventilators. These Philips devices, used by millions of people with specific respiratory challenges, are lifesaving for many. To reduce sound and vibration during use, Philips outfitted the devices with polyester-based polyurethane foam (PE-PUR).

However, there was a problem known to the defendants, but undisclosed to the public: the foam in these devices could degrade. Once degraded, it could break up into particles, which could then be ingested or inhaled by the user. The degrading foam could also “off-gas certain chemicals” known to cause headache, dizziness, irritation (eyes, nose, respiratory tract, skin), hypersensitivity, nausea, vomiting, and that possess other toxic properties with carcinogenic effects.

By the end of 2015 at the latest, Philips had received multiple complaints about the foam. Many came from users who noticed black debris or particles within the airpath of their machines. Philips later admitted it had received reports of headache, upper airway irritation, cough, chest pressure and sinus infection associated with use of devices with foam from consumers. Philips even emailed the foam’s supplier about the issue, yet failed to warn the public at large. Over the years, complaints kept pouring in.

Beginning in February 2020, Philips publicly emphasized its strong 2019 financial results, praising its manufacturing processes, supply chain management, and distributions processes for producing “high-quality products” in a “responsible way.” The following year, Philips made similar statements in its financial results about its sleep and respiratory care products.

Then, on June 14, 2021, Philips voluntarily recalled millions of its Bi-Level PAP and CPAP devices and mechanical ventilators after discovering that the PE-PUR foam in them could degrade, releasing toxic particles and harmful chemicals that could be inhaled or ingested by users.

The suit alleges that Philips’ share price plunged after these disclosures, and that the company’s share price fell to $11.75 from $58.70 during the proposed class period.

On September 23, 2024, Pomerantz won a major victory for investors when U.S. District Judge Edward R. Korman of the Eastern District of New York denied the defendants’ motion to dismiss the investors’ claims against Philips.

On October 28, 2025, Judge Korman denied the defendants’ motion for reconsideration of his finding that former Philips CEO François van Houten must face liability for acting with reckless disregard of the truth regarding customer reports of PE-PUR foam breaking down in its respiratory devices.

“[It is] implausible,” held Judge Korman, “based on the facts alleged, that knowledge of such a severe product defect was kept from Van Houten for years, despite his attendance at a multitude of meetings designed to discuss this sort of issue.”

Partner Emma Gilmore, who leads the litigation, stated, “[Emma, please give a quote.]”

Pomerantz’s litigation team is led by Partners Emma Gilmore and Jeremy A. Lieberman and Associate Villi Shteyn.