Philips Sued for Milestone Payments After $250 Million Deal (1)

A Koninklijke Philips NV affiliate is facing litigation in Delaware over claims it’s dodging post-deal payments tied to its $250 million acquisition of a medical device business.

The lawsuit, filed by former Vesper Medical Inc. investors, targets the Dutch conglomerate’s US unit. The suit says Philips is stiffing Vesper’s ex-owners on milestone payments stemming from regulatory approval of a breakthrough stent system used to treat obstruction of large veins in the pelvis, a condition that can lead to dangerous complications including blood clots.

“Philips’s refusal to pay the milestone to the Vesper shareholders should be seen for what it is: ...