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MASI.US

id: 807

Masimo ($MASI) Investor Settlement

Eligible claimants can submit their claims for compensation.

$33,750,000

Cash Settlement

S.D. California

Court

3:23-cv-01546

Case number

05/04/2022

Class period Start

08/08/2023

Class period End

04/28/2026

Claim deadline

Masimo has reached a settlement with $MASI investors over claims that it misled the market about its ability to sustain growth following its $1 billion acquisition of Sound United.

Outline:

Masimo acquired Sound United in 2022 as part of an expansion into consumer audio products. Investors later alleged the company overstated the growth potential of the acquisition and failed to disclose operational challenges. By mid-2023, the company reduced revenue guidance and reported weak demand and elevated inventory levels. Investors filed suit and Masimo later agreed to a settlement.

Timeline:
February 15, 2022: Masimo announced it would acquire Sound United for $1.025 billion.
April 12, 2022: The acquisition closed, and Masimo launched its consumer audio segment.
May 3, 2022: Masimo made positive statements about the business during its first-quarter earnings call.
July 17, 2023: Masimo reduced its full-year revenue guidance, citing weak demand and elevated inventory levels.
August 8, 2023: Second-quarter earnings confirmed weaker performance and announced planned cost reductions.
October 14, 2023: Investors filed a securities class action lawsuit.
June 2025: Masimo reached a settlement to resolve the claims.
Background:

Masimo is a medical technology company known for monitoring devices used in hospitals and healthcare settings. In 2022, the company expanded beyond its core healthcare business by acquiring Sound United, a consumer audio company that owns brands such as Denon and Bowers & Wilkins.

Masimo promoted the acquisition as a strategic opportunity to expand into consumer electronics and accelerate long-term growth. Investors later alleged that the company overstated the benefits of the transaction and did not fully disclose operational challenges associated with integrating the new business.

Following the acquisition, the consumer audio segment faced issues, including elevated inventory levels and weaker-than-expected demand. The company later reduced its revenue guidance and announced cost reductions as it addressed these challenges.

After the disclosures and the decline in the company’s stock price, investors filed a securities class action alleging that Masimo’s earlier statements about growth and financial outlook were misleading.

What Can Investors Expect Now?

Masimo agreed to a settlement with $MASI investors to resolve claims that it misled them about growth prospects and financial performance following its acquisition of Sound United.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Accepting Claims

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

1.3

Filing date

08/22/2023

Lead Plaintiff Deadline

10/23/2023

Plaintiffs

Sergio Vazquez

Attorneys

Levi & Korsinsky (Los Angeles, CA)

Defendants

Joseph Kiani, Micah Young

Judge

Hon. M. James Lorenz

Administrator

A.B. Data Ltd

Settlement agreement date

2025-08-14

Court hearing date

05/05/2026

Objection deadline

04/14/2026

Attorney fee

$8,837,500

Trades matching type

FIFO

Frequently Asked Questions

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