Shareholder rights group VEB has officially petitioned the Enterprise Chamber in Amsterdam to investigate Philips in relation to its treatment of the massive sleep apnea device recall. The recall, which includes millions of machines because of faulty foam connected to health hazards, has already cost the company billions and damaged its image. VEB claims that Philips did not fully disclose investors the risks and financial consequences and lied to shareholders over many years.
The juridical action might compel an external examination of the company reports and board resolutions. Philips has refuted misconduct, saying that it acted responsibly with communication, and guaranteed to protect itself in court. The case will be a precedent in corporate accountability in the European healthcare sector.
