Dutch electronics and medical device manufacturer Philips said Tuesday it had reached a deal "in principle" with US authorities to settle a long-running case over faulty sleep machines.
The company has for years been weighed down by a series of crises over the recall of its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep.
Millions of devices were recalled over concerns that users were at risk of inhaling pieces of noise-cancelling foam and fears it could potentially cause cancer.
Presenting its third-quarter results, the Dutch firm said it had "reached an agreement in principle with the US Department of Justice to resolve the previously disclosed criminal and civil investigations related to the... recall."
The company set aside 288 million euros ($322 million) in the third quarter of this year to settle the case, with payment expected in the first quarter of 2027.
"The settlement is subject to finalisation of the relevant documentation," said Philips.
The provision pushed down the company's third-quarter profits to 28 million euros, compared to 187 million euros in the same period of last year.
Chief executive officer Roy Jakobs told reporters the deal was clinched "in the last few days", but declined to give further details while the paperwork was being finalised.
"It's for sure an important milestone for us as it marks a step forward in resolving the sleep and respiratory care related proceedings," he said.
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