A multinational conglomerate is set for a Texas showdown in a potential $1.3 billion case in the Netherlands.
Health technology company Philips is fighting in U.S. District Court in Austin to prevent its former director of medical affairs from being deposed by a group of foreign investors who say they will sue for more than $1 billion over issues with its sleep apnea machines.
Institutional investors announced last year that they intend to sue Koninklijke Philips N.V., the parent of Philips Respironics, which made millions of CPAP and BiPAP medical devices.
The planned
Dutch lawsuit argues the company defrauded investors through false and misleading statements, resulting in large losses. Lawyers for the investors have asked a federal judge in Austin to force the deposition of Hisham Elzayat, an Austin area medical affairs consultant.
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The heart surgeon, who was medical director at Philips early this decade, became a central figure in fights within the company over defective machines allegedly causing harm to patients. He pushed Philips to stop shipping the devices but it instead stepped up sales during the pandemic, boosting revenue.
Elzayat subsequently sued as a whistleblower.
The investors say his testimony can shed light on when Philips learned the machines contained a potentially carcinogenic foam that posed a danger to users as it degraded.
"We expect Dr. Elzayat's testimony...
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