Philips CEO Faces Investor Lawsuit Amid Ongoing CPAP Recall Fallout
Amsterdam – Royal Philips is facing continued scrutiny as investors in the United States have filed a lawsuit against CEO Roy Jakobs related to the company’s ongoing issues with recalled sleep apnea devices. The legal action adds to the pressure on Philips as it attempts to move past a $1.1 billion settlement reached earlier this year to resolve claims stemming from the 2021 recall of millions of CPAP machines and ventilators.
The lawsuit, brought by American investors, centers on the fallout from the massive recall, which has been described as the biggest blow to the 133-year-old technology company in its modern history. The recall prompted Philips to create a new executive position – chief patient safety and quality officer – reporting directly to Jakobs, underscoring the company’s renewed focus on safety protocols.
“It had to be crystal clear from the moment I took charge that for me, safety was the No. 1 priority,” Jakobs told Fortune.
Philips is also working to foster a more open culture where product issues can be addressed proactively. The company has implemented regular forums for staff and leadership to review processes and performance, and encourages employees to dedicate time to considering the impact of their perform on patient safety.
Meanwhile, the company’s Supervisory Board has proposed the re-appointment of Roy Jakobs as President and CEO, and as a member of the Board of Management. The proposal, announced on February 10, 2026, reflects the board’s confidence in Jakobs’ leadership as Philips navigates a challenging economic environment and focuses on driving profitable growth. According to a company press release, Jakobs has demonstrated “clear leadership, strong execution and a relentless focus on strengthening Philips.”
Feike Sijbesma, Chairman of the Supervisory Board of Royal Philips, stated that Jakobs has “built a strong foundation, enhanced financial resilience and created an impact-driven culture with a highly engaged team focused on delivering better care for more people through meaningful innovation.”
The re-appointment will be submitted for approval at the Annual General Meeting of Shareholders (AGM) on May 8, 2026. TipRanks reports that the board also highlighted progress made in addressing the Respironics recall, achieving €2.5 billion in productivity savings, and improving margins and cash flow.
The ongoing legal challenges and the shareholder vote on Jakobs’ re-appointment underscore the significant hurdles Philips faces as it seeks to restore investor confidence and rebuild its reputation following the CPAP recall. The situation highlights the increasing importance of patient safety and quality control within the medical device industry.
