Investors’ association VEB starts proceedings against Philips to recover billions of euros in damage, the FD reports. Patients and investors have been “systematically misinformed” about the problems with apnea and ventilators, according to the VEB. As a result, investors would have paid far too high a price for Philips shares in the past. The association estimates the total damage for shareholders at 16 billion euros.
The VEB formally holds Philips liable for the damage in a letter sent to the company last weekend. The investor club wants to meet with Philips within two weeks to discuss a compensation scheme. If Philips does not enter into that conversation, it will go to court. The VEB expects to eventually file a claim for damages.
Philips first reported early last year that its apnea and ventilators may be emitting fragments of sound-dampening foam and chemical gases, which could pose a risk to patients. That message caused great concern, among patients and investors alike. The share price of Philips has fallen by more than 60 percent since April last year, from around 50 to 18 euros last Friday. As a result, 27 billion euros in market value was lost.