Masimo ($MASI) Investor Settlement
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 $MASI investors to resolve claims that it misled them about growth prospects and financial performance following its acquisition of Sound United.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired publicly traded Masimo Corporation ($MASI) common stock during the period from May 4, 2022 through August 8, 2023, inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $1.30 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $5.20 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.