MASI.US
id: 807
Masimo ($MASI) Investor Settlement
The parties have reached an agreement to settle the case, but the terms are still being finalized.
S.D. California
Court3:23-cv-01546
Case number05/04/2022
Class period Start08/08/2023
Class period EndMasimo 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.
- In July 2023, Masimo reported financial results, missing revenue projections.
- $MASI declined about 20%, damaging shareholders.
- Investors suspect Masimo & its Leaders of misleading about their ability to accurately project and deliver expected revenue.
On July 17, 2023, Masimo released preliminary financial results for Q2 2023, revealing lower-than-expected revenue.
The Company claimed that “large orders that were anticipated for the second quarter were delayed to the second half of the year” and that “single-patient use sensor sales were down due to elevated sensor inventory levels at some customers.”
On this news, $MASI declined about 20%, damaging shareholders.
- Earlier, on February 28, 2023, Masimo announced 2022 financial results and CEO Joe Kiani stated that “2022 was a momentous year for Masimo. Our healthcare business outperformed expectations."
- Kiani and CFO Young provided analysts with detailed information concerning the Company’s ability to deliver clinically proven new products and insight into the Company’s projections for the upcoming year.
Considering all representations, Investors have reasons to suspect Masimo and its Leaders of failing to disclose material information concerning its inability to accurately project sales and revenue.
Case Type
US Securities Class Action
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
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
Trades matching type
FIFO
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