Masimo’s Lawsuit Forced Politan and Quentin Koffey to Issue Corrective Disclosures on False and Misleading Statements Made to Masimo Stockholders on Issues Material to the Proxy Contest
Masimo (NASDAQ: MASI) has issued a statement addressing false claims made by Politan Capital Management LP and Quentin Koffey in their proxy contest. The company's lawsuit has forced Politan to issue corrective disclosures on several misleading statements, including:
1. Lies about the spin-off and the Special Committee's decision
2. False claims about the Board's role in the sale process
3. Misrepresentations about the outcome of the sale process
Masimo urges stockholders to vote 'FOR' its director nominees, Joe Kiani and Christopher Chavez, on the updated GOLD proxy card for the upcoming September 19, 2024 Annual Meeting. The company emphasizes that its recent earnings show its strategy is working and warns against risking this momentum by handing control to an inexperienced team with no clear strategy.
Masimo (NASDAQ: MASI) ha emesso una dichiarazione in risposta a false affermazioni fatte da Politan Capital Management LP e Quentin Koffey nel loro contesto di proxy. La causa della società ha costretto Politan a pubblicare chiarimenti su diverse dichiarazioni fuorvianti, tra cui:
1. Bugie riguardo allo spin-off e alla decisione del Comitato Speciale
2. Falsità sul ruolo del Consiglio nel processo di vendita
3. Rappresentazioni errate sull'esito del processo di vendita
Masimo esorta gli azionisti a votare 'A FAVORE' dei suoi candidati alla direzione, Joe Kiani e Christopher Chavez, sulla scheda proxy GOLD aggiornata per la prossima Riunione Annuale del 19 settembre 2024. L'azienda sottolinea che i recenti risultati mostrano che la sua strategia sta funzionando e mette in guardia contro il rischio di compromettere questo slancio affidando il controllo a un team inesperto privo di una strategia chiara.
Masimo (NASDAQ: MASI) ha emitido una declaración abordando las falsas afirmaciones realizadas por Politan Capital Management LP y Quentin Koffey en su contienda de poder. La demanda de la compañía ha obligado a Politan a emitir divulgaciones correctivas sobre varias declaraciones engañosas, incluyendo:
1. Mentiras sobre la escisión y la decisión del Comité Especial
2. Falsas afirmaciones sobre el papel de la Junta en el proceso de venta
3. Representaciones incorrectas sobre el resultado del proceso de venta
Masimo insta a los accionistas a votar 'A FAVOR' de sus nominados a la junta, Joe Kiani y Christopher Chavez, en la tarjeta de poder GOLD actualizada para la próxima Reunión Anual del 19 de septiembre de 2024. La compañía enfatiza que sus recientes ganancias demuestran que su estrategia está funcionando y advierte sobre el riesgo de comprometer este impulso al otorgar el control a un equipo inexperto sin una estrategia clara.
Masimo (NASDAQ: MASI)는 Politan Capital Management LP와 Quentin Koffey에 의해 제기된 허위 주장에 대한 성명을 발표했습니다. 회사의 법적 조치는 Politan에게 여러 가지 오해를 불러일으킨 주장에 대한 정정된 공개를 발표하게 했습니다. 주요 내용은 다음과 같습니다:
1. 스핀오프 및 특별 위원회의 결정에 대한 거짓말
2. 매각 절차에서 이사회 역할에 대한 허위 주장
3. 매각 절차 결과에 대한 잘못된 설명
Masimo는 주주들에게 2024년 9월 19일 예정된 연례 회의에서 GOLD 수정된 프록시 카드에 따라 Joe Kiani와 Christopher Chavez라는 이사 후보들에 '찬성' 투표를 하도록 촉구하고 있습니다. 회사는 최근의 실적이 자사의 전략이 효과적임을 보여준다고 강조하며, 명확한 전략이 없는 경험 부족의 팀에게 통제를 맡기는 것을 통해 이 운동을 위험에 처하게 하지 않도록 경고합니다.
Masimo (NASDAQ: MASI) a publié une déclaration concernant de fausses allégations formulées par Politan Capital Management LP et Quentin Koffey dans le cadre de leur contestation par procuration. Le procès de l'entreprise a contraint Politan à publier des informations correctives sur plusieurs déclarations trompeuses, notamment :
1. Mensonges au sujet de la scission et de la décision du Comité Spécial
2. Fausse déclarations concernant le rôle du Conseil dans le processus de vente
3. Représentations inexactes concernant le résultat du processus de vente
Masimo exhorte les actionnaires à voter 'POUR' ses candidats au conseil d'administration, Joe Kiani et Christopher Chavez, sur la carte de vote GOLD mise à jour pour la prochaine Assemblée Générale Annuelle prévue le 19 septembre 2024. L'entreprise souligne que ses résultats récents montrent que sa stratégie fonctionne et met en garde contre le risque de compromettre cet élan en confiant le contrôle à une équipe inexpérimentée sans stratégie claire.
Masimo (NASDAQ: MASI) hat eine Erklärung veröffentlicht, die sich mit falschen Behauptungen von Politan Capital Management LP und Quentin Koffey im Rahmen ihres Stellvertreterkampfes befasst. Die Klage des Unternehmens hat Politan gezwungen, korrigierende Offenlegungen zu mehreren irreführenden Aussagen zu machen, darunter:
1. Lügen über die Abspaltung und die Entscheidung des Sonderausschusses
2. Falsche Behauptungen über die Rolle des Vorstands im Verkaufsprozess
3. Falsche Darstellungen über den Ausgang des Verkaufsprozesses
Masimo fordert die Aktionäre auf, auf der aktualisierten GOLD-Stimmkarte für die bevorstehende Hauptversammlung am 19. September 2024 'FÜR' die von ihnen nominierten Direktoren Joe Kiani und Christopher Chavez zu stimmen. Das Unternehmen betont, dass die aktuellen Gewinnzahlen zeigen, dass die Strategie funktioniert, und warnt davor, diesen Schwung zu gefährden, indem die Kontrolle an ein unerfahrenes Team ohne klare Strategie abgegeben wird.
- Masimo's lawsuit has forced Politan to issue corrective disclosures, revealing false statements
- Recent earnings show Masimo's strategy is working
- Company has made concrete commitments to separate consumer business and expand Board independence
- Ongoing proxy contest with Politan Capital Management LP
- Potential risk of leadership changes if Politan gains control of the Board
- Possible mass resignation of employees, including senior executives, if Politan gains control
Insights
This lawsuit highlights the serious allegations of misleading statements in a high-stakes proxy contest. The court-ordered corrective disclosures suggest potential securities law violations, which could have significant implications for both Masimo and Politan. From a legal standpoint, these revelations may undermine Politan's credibility and strengthen Masimo's position in the proxy fight. However, the full impact will depend on the sealed court order's contents and any subsequent legal actions. This situation underscores the importance of accurate disclosures in proxy contests and the potential legal consequences of misrepresentations.
This proxy contest reveals critical corporate governance issues at Masimo. The allegations of misleading statements by Politan raise questions about the integrity of the board nomination process. The potential departure of key executives, including the CEO and COO, if Politan gains control, suggests significant management instability risks. This situation highlights the delicate balance between activist influence and company stability. Shareholders must carefully consider the long-term implications of their vote, weighing the promised changes against the risks of leadership exodus and strategic disruption. The outcome of this proxy fight could significantly impact Masimo's future governance structure and strategic direction.
This proxy contest introduces substantial uncertainty for Masimo's investors. The company's claim that its strategy is working, supported by recent earnings, contrasts with Politan's push for change. However, the potential departure of key executives, including the CEO and COO, if Politan wins, poses a significant risk to operational continuity. The dispute over the spin-off and sale process adds further complexity. Investors should closely monitor the situation, as the outcome could significantly impact Masimo's strategic direction and valuation. The stock may experience volatility as the September 19 vote approaches, reflecting the high stakes of this corporate control battle.
ISS and Glass Lewis Based Recommendations Upon Politan’s Lies; Egan-Jones Recommends “FOR” Both of Masimo’s Director Nominees Following Multiple Corrective Disclosures by Politan
Control of Masimo Depends on September 19 Vote – Stockholders Urged to Vote “FOR” Only Masimo’s Director Nominees, Joe Kiani and Christopher Chavez, on the Updated GOLD Proxy Card
Masimo’s lawsuit forced Politan to issue several new disclosures, including on the morning of the hearing, to correct its false and misleading statements and to provide material information Politan previously concealed from Masimo stockholders, ISS and Glass Lewis. These false and misleading statements include:
- Politan and Quentin Koffey Lied About the Spin-off. Mr. Koffey falsely claimed that the Special Committee had unanimously rejected the term sheet he had previously agreed upon with Mr. Kiani. In fact, Politan’s corrective disclosures revealed that Mr. Koffey never shared the agreed upon term sheet with any other member of the Special Committee.
- Politan and Quentin Koffey Lied About the Board’s Role in the Sale Process. Mr. Koffey falsely claimed that the Board authorized Mr. Kiani to carry out a sale of the Company without further Board oversight. In fact, Politan’s corrective disclosures revealed that Mr. Koffey knew this not to be true.
- Politan and Quentin Koffey Lied About the Outcome of the Sale Process. Mr. Koffey falsely implied that Mr. Kiani unilaterally rejected offers for Masimo because those offers didn’t satisfy Mr. Kiani personally. In fact, Politan’s corrective disclosures revealed that Mr. Koffey knew that Masimo had not received or rejected any offers.
Masimo issued the following statement:
“Politan and Quentin Koffey have relied on misleading and false statements to distract both stockholders and proxy advisory firms from their lack of a plan or strategy for Masimo. In stark contrast, Masimo has made concrete commitments to usher in changes that stockholders have said they want, including separating our consumer business and expanding the Board with more independent directors. Our recent earnings clearly show that our strategy is working. We urge stockholders not to put this momentum at risk by handing control to an inexperienced team with no strategy or leadership plan for the business, particularly in light of the fact that Mr. Kiani has been clear about his intentions to depart the Company should Politan gain control of the Board. Masimo’s COO, Bilal Muhsin, has also declared his intent to resign if Politan gains control of the Board, and more than three hundred other employees, including senior executives, have expressed that they may follow suit.”
The September 19, 2024 Annual Meeting is fast approaching, and it’s important to vote as soon as possible. The Company urges stockholders to vote “FOR” Masimo’s director nominees, Joe Kiani and Christopher Chavez, on the updated GOLD proxy card to protect Masimo’s future and your investment.
For more information on how to protect the value of your investment at Masimo, visit www.ProtectMasimosFuture.com.
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Your Vote Is Important, Please Use The Updated GOLD Proxy Card Today! |
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About Masimo
Masimo (NASDAQ: MASI) is a global medical technology company that develops and produces a wide array of industry-leading monitoring technologies, including innovative measurements, sensors, patient monitors, and automation and connectivity solutions. In addition, Masimo Consumer Audio is home to eight legendary audio brands, including Bowers & Wilkins, Denon, Marantz, and Polk Audio. Our mission is to improve life, improve patient outcomes, and reduce the cost of care. Masimo SET ® Measure-through Motion and Low Perfusion ™ pulse oximetry, introduced in 1995, has been shown in over 100 independent and objective studies to outperform other pulse oximetry technologies. 1 Masimo SET ® has also been shown to help clinicians reduce severe retinopathy of prematurity in neonates, 2 improve CCHD screening in newborns 3 and, when used for continuous monitoring with Masimo Patient SafetyNet ™ in post-surgical wards, reduce rapid response team activations, ICU transfers, and costs. 4-5 Masimo SET ® is estimated to be used on more than 200 million patients in leading hospitals and other healthcare settings around the world, 6 and is the primary pulse oximetry at all 10 top
References
1. Published clinical studies on pulse oximetry and the benefits of Masimo SET ® can be found on our website at www.masimo.com. Comparative studies include independent and objective studies which are comprised of abstracts presented at scientific meetings and peer-reviewed journal articles.
2. Castillo A et al. Prevention of Retinopathy of Prematurity in Preterm Infants through Changes in Clinical Practice and SpO2 Technology. Acta Paediatr. 2011 Feb;100(2):188-92.
3. de-Wahl Granelli A et al. Impact of pulse oximetry screening on the detection of duct dependent congenital heart disease: a Swedish prospective screening study in 39,821 newborns. BMJ. 2009;Jan 8;338.
4. McGrath S et al. Surveillance Monitoring Management for General Care Units: Strategy, Design, and Implementation. The Joint Commission Journal on Quality and Patient Safety. 2016 Jul;42(7):293-302.
5. McGrath S et al. Inpatient Respiratory Arrest Associated With Sedative and Analgesic Medications: Impact of Continuous Monitoring on Patient Mortality and Severe Morbidity. J Patient Saf. 2021; 17(8):557-561.
6. Estimate: Masimo data on file.
7. As ranked in the 2024 Newsweek World’s Best Hospitals listing, available at https://www.newsweek.com/rankings/worlds-best-hospitals-2024/united-states.
Forward-Looking Statements
This press release includes forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in connection with the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding the 2024 Annual Meeting of Stockholders (the “2024 Annual Meeting”) of Masimo and the potential stockholder approval of the Board’s nominees; changes to Masimo's governance, including the composition of Masimo's Board of Directors and Masimo's plans to expand the Board; and the proposed separation of Masimo’s consumer business, including any potential joint venture or any other potential separation of Masimo’s consumer business. These forward-looking statements are based on current expectations about future events affecting Masimo and are subject to risks and uncertainties, all of which are difficult to predict and many of which are beyond Masimo’s control and could cause its actual results to differ materially and adversely from those expressed in its forward-looking statements as a result of various risk factors, including, but not limited to (i) uncertainties regarding future actions that may be taken by Politan in furtherance of its nomination of director candidates for election at the 2024 Annual Meeting, (ii) the potential cost and management distraction attendant to Politan’s nomination of director nominees at the 2024 Annual Meeting and (iii) factors discussed in the “Risk Factors” section of Masimo’s most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), which may be obtained for free at the SEC’s website at www.sec.gov. Although Masimo believes that the expectations reflected in its forward-looking statements are reasonable, the Company does not know whether its expectations will prove correct. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today’s date. Masimo does not undertake any obligation to update, amend or clarify these statements or the “Risk Factors” contained in the Company’s most recent reports filed with the SEC, whether as a result of new information, future events or otherwise, except as may be required under the applicable securities laws.
Additional Information Regarding the 2024 Annual Meeting of Stockholders and Where to Find It
On August 15, 2024, the Company filed a revised version of its 2024 proxy statement (the “Revised Proxy Statement”) and has mailed the Revised Proxy Statement to its stockholders of record as of the new August 12, 2024 record date for the 2024 Annual Meeting. Any votes submitted by Masimo stockholders in connection with the 2024 Annual Meeting prior to the filing of the Revised Proxy Statement will not be counted and previous proxies submitted will be disregarded, and therefore, all stockholders will need to resubmit their votes, even if they have previously voted. The Company filed a revised version of the Revised Proxy Statement with the SEC on August 22, 2024, which amended, superseded and replaced in its entirety the Revised Proxy Statement (the “Amended Revised Proxy Statement”). THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE AMENDED REVISED PROXY STATEMENT (AND ANY AMENDMENTS AND SUPPLEMENTS THERETO) AND ACCOMPANYING UPDATED GOLD PROXY CARD AS THEY CONTAIN IMPORTANT INFORMATION. Stockholders may obtain the Amended Revised Proxy Statement and any amendments or supplements thereto and other documents as and when filed by the Company with the SEC without charge from the SEC’s website at www.sec.gov.
Certain Information Regarding Participants
The Company, its directors and certain of its executive officers and employees may be deemed to be participants in connection with the solicitation of proxies from the Company’s stockholders in connection with the matters to be considered at the 2024 Annual Meeting. Information regarding the direct and indirect interests, by security holdings or otherwise, of the Company’s directors and executive officers in the Company is included in the Amended Revised Proxy Statement, which can be found through the SEC’s website at https://www.sec.gov/ix?doc=/Archives/edgar/data/937556/000121390024071554/ea0206756-07.htm, and any changes thereto may be found in any amendments or supplements to the Amended Revised Proxy Statement and other documents as and when filed by the Company with the SEC, which can be found through the SEC’s website at www.sec.gov.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240912687575/en/
Investor Contact: Eli Kammerman
(949) 297-7077
ekammerman@masimo.com
Media Contact: Evan Lamb
(949) 396-3376
elamb@masimo.com
Source: Masimo Corporation
FAQ
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