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Masimo (MASI) Sues Politan for Misstatements, Delays Annual Meet
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Masimo (MASI - Free Report) announced that it has initiated legal action against Politan Capital Management amid an ongoing proxy battle for board membership. The company is seeking an injunction requiring Politan to correct material misstatements.
MASI also announced a new date for its 2024 annual meeting of stockholders, now set for Sep 19, 2024. This change is aimed at ensuring a fair and fully informed vote by the shareholders. The meeting was initially scheduled for Jul 25.
Reasons Behind the Litigation
Masimo's lawsuit against Politan seeks to compel the activist investor to rectify material misstatements and omissions in its proxy materials. Among other allegations, Masimo claims that Quentin Koffey, Politan’s managing partner and chief investment officer, assisted plaintiff’s counsel in litigation against Masimo. Koffey joined Masimo’s board last summer by winning the proxy vote during Annual Meeting last year.
Price Performance
The company’s shares have lost 6.3% year to date against 4.3% growth of the industry. The S&P 500 has increased 16.9% during the same time frame.
Image Source: Zacks Investment Research
Masimo vs. Politan
The conflict between Masimo and Politan has been a protracted one, centered around Politan's efforts to unseat CEO Joe Kiani. Last year, Politan secured two seats on Masimo’s board. In a letter dated Jun 26, COO Bilal Muhsin expressed his intention to resign if Koffey and Politan gain control of the company. Nearly 300 Masimo Healthcare Engineering employees, along with several regional sales managers in Europe, Asia and Australia, have also indicated that they might leave the company under Politan’s control.
Under Politan's pressure, Masimo has explored the possibility of spinning off its consumer business. This would reverse its $1 billion acquisition of Sound United, a company known for high-end audio and home theater systems.
Politan's Response to the Litigation
In response to MASI’s announcement, Koffey asserted that there is no inaccuracy in Politan’s proxy materials and denied any contact with the plaintiff’s counsel. He argued that Masimo’s bylaws and Delaware law require annual meetings to be held within 13 months of the last one, while the rescheduled meeting would occur 15 months after the former one.
Koffey contended that the meeting need not have to be delayed beyond Aug 5. He characterized the rescheduling as a desperate attempt to silence shareholders and described the legal action as retaliatory. Koffey expressed confidence in defeating the litigation and committed to ensuring that the annual meeting is not postponed beyond Sep 19. He criticized the board's previous attempts to block shareholder rights and looked forward to starting a new chapter for Masimo.
Some other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Haemonetics (HAE - Free Report) and Universal Health Services (UHS - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 16.1%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.78%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical’s shares have risen 29.8% year to date compared with the industry’s 6.1% growth.
Haemonetics, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12%. HAE’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.24%.
Haemonetics’ shares have gained 7.1% compared with the industry’s 3.2% growth year to date.
Universal Health Services has an estimated long-term growth rate of 15.2% for 2024. UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.8%.
Universal Health Services’ shares have risen 20.7% year to date compared with the industry’s 19.5% growth.
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Masimo (MASI) Sues Politan for Misstatements, Delays Annual Meet
Masimo (MASI - Free Report) announced that it has initiated legal action against Politan Capital Management amid an ongoing proxy battle for board membership. The company is seeking an injunction requiring Politan to correct material misstatements.
MASI also announced a new date for its 2024 annual meeting of stockholders, now set for Sep 19, 2024. This change is aimed at ensuring a fair and fully informed vote by the shareholders. The meeting was initially scheduled for Jul 25.
Reasons Behind the Litigation
Masimo's lawsuit against Politan seeks to compel the activist investor to rectify material misstatements and omissions in its proxy materials. Among other allegations, Masimo claims that Quentin Koffey, Politan’s managing partner and chief investment officer, assisted plaintiff’s counsel in litigation against Masimo. Koffey joined Masimo’s board last summer by winning the proxy vote during Annual Meeting last year.
Price Performance
The company’s shares have lost 6.3% year to date against 4.3% growth of the industry. The S&P 500 has increased 16.9% during the same time frame.
Image Source: Zacks Investment Research
Masimo vs. Politan
The conflict between Masimo and Politan has been a protracted one, centered around Politan's efforts to unseat CEO Joe Kiani. Last year, Politan secured two seats on Masimo’s board. In a letter dated Jun 26, COO Bilal Muhsin expressed his intention to resign if Koffey and Politan gain control of the company. Nearly 300 Masimo Healthcare Engineering employees, along with several regional sales managers in Europe, Asia and Australia, have also indicated that they might leave the company under Politan’s control.
Under Politan's pressure, Masimo has explored the possibility of spinning off its consumer business. This would reverse its $1 billion acquisition of Sound United, a company known for high-end audio and home theater systems.
Politan's Response to the Litigation
In response to MASI’s announcement, Koffey asserted that there is no inaccuracy in Politan’s proxy materials and denied any contact with the plaintiff’s counsel. He argued that Masimo’s bylaws and Delaware law require annual meetings to be held within 13 months of the last one, while the rescheduled meeting would occur 15 months after the former one.
Koffey contended that the meeting need not have to be delayed beyond Aug 5. He characterized the rescheduling as a desperate attempt to silence shareholders and described the legal action as retaliatory. Koffey expressed confidence in defeating the litigation and committed to ensuring that the annual meeting is not postponed beyond Sep 19. He criticized the board's previous attempts to block shareholder rights and looked forward to starting a new chapter for Masimo.
Masimo Corporation Price
Masimo Corporation price | Masimo Corporation Quote
Zacks Rank & Other Key Picks
Masimo currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Haemonetics (HAE - Free Report) and Universal Health Services (UHS - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 16.1%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.78%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical’s shares have risen 29.8% year to date compared with the industry’s 6.1% growth.
Haemonetics, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12%. HAE’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.24%.
Haemonetics’ shares have gained 7.1% compared with the industry’s 3.2% growth year to date.
Universal Health Services has an estimated long-term growth rate of 15.2% for 2024. UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.8%.
Universal Health Services’ shares have risen 20.7% year to date compared with the industry’s 19.5% growth.