JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- Philips, the multinational conglomerate, is under scrutiny from the Therapeutic Goods Administration (TGA) in Australia.
The TGA has initiated proceedings against Philips in the Federal Court of Australia for allegedly supplying medical devices that failed to comply with Australian safety and performance standards. The devices in question include sleep apnoea machines.
Shares in the company were down 0.8% in Tuesday trading.
According to Philips, the installed base for sleep machines in Australia is approximately 44,000 units, 94% of which were addressed as part of a global recall involving 5.6 million devices. Despite the ongoing legal proceedings, Philips has indicated that the timeline for the case remains uncertain and that it has not experienced any commercial disruption. The company also noted that the most severe consequence it could face would be a financial penalty.
In a similar case, medical device company Medtronic (NYSE:MDT) was fined $22 million and incurred $1 million in costs in 2024 for supplying 16,000 units of the INFUSE® Bone Graft Kits between 1 September 2015 and 31 January 2020.
In response to the news, Barclays (LON:BARC) stated, "Whilst unhelpful, we expect this piece of news to have a limited impact on the share price. We have written extensively on the topic in the past, and as a reminder Philips settled the case in the US for $1.1bn in 2024 and we continue to wait for the DOJ outcome."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.