Healthcare technology group Philips has set aside a further €575 million to cover the cost of possible legal damages resulting from its breathing equipment for sleep apnea sufferers.

In September, a group of investors in Philips launched a claim for €16 billion for allegedly being misinformed about the extent of problems with the company’s devices. Other law suits are also pending.

Philips has recalled 5.5 million machines and 17 million sleep masks worldwide after it emerged that tiny foam particles could be released during cleaning and then inhaled, while magnetic clips in the masks potentially interfere with heart pacemakers.

The company said at the presentation of its first quarter results on Monday that the new reserve is to cover a possible damages claim in the US. Philips has already set aside around €1 billion to cover the cost of the recall.

The company said it had posted a loss of €583 million over the first quarter of this year, while sales rose to €4.1 billion.

Challenge

Meanwhile, the Financieele Dagblad reports that the works council at the company R&D unit is going to court in an effort to have the planned closure of the Natlab in Eindhoven overturned.

Philips wants to cut hundreds of jobs at the lab and slash the budgets for R&D.

At the beginning of this year the company said it was cutting a further 6,000 jobs, on top of an earlier 4,000. The company had a workforce of some 77,000 at the end of last year.