A Dutch court dismissed shareholders’ demands for an investigation into Koninklijke Philips NV’s handling of its 2021 recall of around 15 million sleep apnea and respiratory devices. The Enterprise Chamber of the Amsterdam Court of Appeal found no sufficient grounds to question Philips’ policies or management practices, saying internal systems followed international standards, were regularly audited and had been strengthened over time. The court found no evidence that Philips’ executive or supervisory boards received reliable information about health risks from the PE-PUR foam too late, noting that sufficient research data became available only in the first months of 2021. It also found no basis to conclude that Philips should have intervened earlier at U.S. subsidiary Respironics or that supervisory oversight was inadequate. The ruling does not determine whether errors occurred at Respironics or whether investors are entitled to compensation. Philips shares lost about two-thirds of their value after the recall, which followed the discovery that foam could degrade and potentially release harmful substances. Philips welcomed the decision and denied the allegations. Legal and regulatory scrutiny continues, including a French investigation into aggravated fraud and failure to report safety risks. Philips agreed in 2024 to pay $1.1 billion to settle all U.S. personal injury claims related to the devices.