Masimo Sets the Record Straight on Bylaw Amendments

Rhea-AI Summary

Masimo (NASDAQ: MASI) has issued a statement responding to a lawsuit filed by Politan Capital Management in Delaware. The company claims the lawsuit follows Politan's failed attempts to gain a board seat for its founder, Quentin Koffey, who lacks relevant industry experience. Masimo's board emphasizes the adoption of bylaw amendments to enhance transparency for shareholders and reject Politan's demands as self-serving. The legal team includes prestigious law firms like Quinn Emanuel Urquhart & Sullivan LLP.

Positive

• Masimo's board remains committed to serving all shareholders' best interests.
• Bylaw amendments aim to improve transparency for stockholders.

Negative

• The lawsuit presents a potential distraction and legal risk for Masimo.
• Politan Capital Management's aggressive stance could lead to increased pressure on the board.

Responds to Politan Capital Management’s Complaint

IRVINE, Calif.--(BUSINESS WIRE)-- Masimo (NASDAQ: MASI) today issued the following statement in response to the complaint filed by Politan Capital Management (“Politan”) in the Delaware Court of Chancery (the “Lawsuit”):

We believe this lawsuit is being initiated after the Masimo Board refused to accede to Politan’s strongarm demands for Board representation, including its demand for a board seat for Politan’s founder, Quentin Koffey, who has never served on a corporate board and has no relevant experience in Masimo’s industry. Politan accumulated a nearly 9% stake in Masimo without any prior dialogue with the Company, and its lawsuit is an effort to disguise its self-serving agenda. Masimo’s Board continues to be highly focused on serving the best interests of all shareholders.

The bylaw amendments were adopted by the Masimo Board after thoughtful consideration. They are designed to improve transparency to ensure that stockholders receive information relevant to an informed vote. We reject the premise that an activist hedge fund attacking a public company should be allowed to hide its web of financial entanglements and significant financial backers.

Quinn Emanuel Urquhart & Sullivan LLP, Paul Hastings LLP and Abrams & Bayliss are acting as legal counsel to the Company.

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. Our mission is to improve patient outcomes, 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. Masimo SET® has also been shown to help clinicians reduce severe retinopathy of prematurity in neonates, improve CCHD screening in newborns, and, when used for continuous monitoring with Masimo Patient SafetyNet™ in post-surgical wards, reduce rapid response team activations, ICU transfers, and costs. Masimo SET® is estimated to be used on more than 200 million patients in leading hospitals and other healthcare settings around the world, and is the primary pulse oximetry at 9 of the top 10 hospitals as ranked in the 2021-22 U.S. News and World Report Best Hospitals Honor Roll. Masimo continues to refine SET® and in 2018, announced that SpO2 accuracy on RD SET® sensors during conditions of motion has been significantly improved, providing clinicians with even greater confidence that the SpO2 values they rely on accurately reflect a patient’s physiological status. In 2005, Masimo introduced rainbow® Pulse CO-Oximetry technology, allowing noninvasive and continuous monitoring of blood constituents that previously could only be measured invasively, including total hemoglobin (SpHb®), oxygen content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®), Pleth Variability Index (PVi®), RPVi™ (rainbow® PVi), and Oxygen Reserve Index (ORi™). In 2013, Masimo introduced the Root® Patient Monitoring and Connectivity Platform, built from the ground up to be as flexible and expandable as possible to facilitate the addition of other Masimo and third-party monitoring technologies; key Masimo additions include Next Generation SedLine® Brain Function Monitoring, O3® Regional Oximetry, and ISA™ Capnography with NomoLine® sampling lines. Masimo’s family of continuous and spot-check monitoring Pulse CO-Oximeters® includes devices designed for use in a variety of clinical and non-clinical scenarios, including tetherless, wearable technology, such as Radius-7® and Radius PPG™, portable devices like Rad-67®, fingertip pulse oximeters like MightySat® Rx, and devices available for use both in the hospital and at home, such as Rad-97®. Masimo hospital automation and connectivity solutions are centered around the Masimo Hospital Automation™ platform, and include Iris® Gateway, iSirona™, Patient SafetyNet, Replica™, Halo ION™, UniView®, UniView :60™, and Masimo SafetyNet™. Additional information about Masimo and its products may be found at www.masimo.com. Published clinical studies on Masimo products can be found at www.masimo.com/evidence/featured-studies/feature/.

ORi and RPVi have not received FDA 510(k) clearance and are not available for sale in the United States. The use of the trademark Patient SafetyNet is under license from University HealthSystem Consortium.

Forward-Looking Statements

This press release includes forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, in connection with the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding the lawsuit filed by Politan and Masimo’s bylaw amendments. These forward-looking statements are based on current expectations about future events affecting us and are subject to risks and uncertainties, all of which are difficult to predict and many of which are beyond our control and could cause our actual results to differ materially and adversely from those expressed in our forward-looking statements as a result of various risk factors, including, but not limited to, risks related to litigation, as well as other factors discussed in the "Risk Factors" section of our most recent 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 we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our 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. We do not undertake any obligation to update, amend or clarify these statements or the "Risk Factors" contained in our 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221021005429/en/

Investor Contact:

Eli Kammerman

(949) 297-7077

ekammerman@masimo.com

Media Contact:

Jamie Moser / Meaghan Repko / Fouad Boutros / Tali Epstein

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

Source: Masimo

FAQ

What is the lawsuit filed by Politan Capital Management against Masimo about?

Politan's lawsuit arises from its demands for board representation after acquiring a nearly 9% stake in Masimo.

What are Masimo's responses to the lawsuit?

Masimo claims the lawsuit is self-serving and emphasizes its board's commitment to all shareholders.

What changes did Masimo implement regarding its bylaws?

Masimo adopted bylaw amendments aimed at increasing transparency for stockholders.

Who is representing Masimo legally in the lawsuit against Politan?

Masimo is represented by legal firms including Quinn Emanuel Urquhart & Sullivan LLP.