Koninklijke Philips (NYSE:PHG) stock is climbing higher on Monday after the company announced a settlement connected to its recall of sleep apnea product Respironics.

Koninklijke Philips has agreed to a $1.1 billion payment to settle the personal injury claims made against it via the lawsuit. The company says these payments will start in 2025. It also doesn’t claim any wrongdoing in the settlement.

Royal Philips CEO Roy Jakobs said the following about the lawsuit settlement.

“Patient safety and quality is our highest priority, and we have taken important steps in further resolving the consequences of the Respironics recall. The remediation of the sleep therapy devices for patients is almost complete, and the test results to date show the use of these devices is not expected to result in appreciable harm to health. We do regret the concern that patients may have experienced.”

PHG Stock Jumps Despite Q1 Miss

PHG stock is up on the litigation news even as its revenue of 4.14 billion euros misses Wall Street’s estimate of 4.19 billion euros. However, it was in line with the company’s improvement plans and represents a 2.4% growth year-over-year.

Koninklijke Philips also notes that it expects revenue for 2024 to increase between 3% and 5%. It’s also expecting an Adjusted EBITA margin of 11-11.5%. Investors will note this outlook doesn’t include any other potential litigation connected to Respironics.

PHG stock is up 40.6% as of Monday morning.

There are more stock market stories traders will want to read about today!

Fortunately, we have all of the hottest stock market news ready to go on Monday! Among that is why shares of Inno (NASDAQ:INHD) stock are up, the biggest pre-market stock movers this morning and more. All of this news is available at the following links!

More Stock Market News for Monday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.