Masimo $33.75 Million Class Action Securities Settlement

Investors who purchased or otherwise acquired the publicly traded common stock of Masimo Corp. between May 4, 2022, and Aug. 8, 2023, and allegedly suffered damages as a result may be eligible to claim a cash payment from a class action settlement.

Masimo Corp. agreed to pay $33.75 million to settle a securities class action lawsuit alleging it made false and misleading statements and omissions regarding its health care business, the acquisition and integration of Sound United, and related financial disclosures.

Who can file a claim?

The settlement class includes all persons and entities who purchased or otherwise acquired the publicly traded common stock of Masimo Corp. during the period from May 4, 2022, through Aug. 8, 2023, both dates inclusive, and allegedly suffered damages as a result.

Additional details

• The actual beneficial owner or a legal representative of such owner must file the claim.
• All joint owners must sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.

How much is the Masimo payout?

The total settlement fund is $33,750,000. The amount each class member receives depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase, sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts depend on purchase, acquisition and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation, which applies different formulas depending on when class members purchased, sold or held their shares.
• For shares sold before the open of trading on July 18, 2023, the recognized loss amount is $0.
• For shares sold after the open of trading on July 18, 2023, through the close of trading on Aug. 8, 2023, the recognized loss amount is the lesser of the artificial inflation difference or the out-of-pocket loss.
• For shares sold after the open of trading on Aug. 9, 2023, through the close of trading on Nov. 6, 2023, the recognized loss amount is the least of: (a) the artificial inflation at purchase, (b) the purchase price minus the average closing price from Aug. 9, 2023, up to the date of sale or (c) the out-of-pocket loss.
• For shares held as of the close of trading on Nov. 6, 2023, the recognized loss amount is the lesser of: (a) the artificial inflation at purchase (per the inflation table on Pages 13-14 of the settlement notice) or (b) the purchase price minus $95.50 (the mean closing price during the 90-day lookback period).

• The settlement administrator will set any recognized loss amount that calculates to a negative number to $0.
• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout but still be bound by the settlement.

How to claim a Masimo securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is April 28, 2026.

Settlement administrator’s mailing address: Masimo Securities Settlement, c/o A.B. Data Ltd., P.O. Box 170600, Milwaukee, WI 53217

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Total shares of Masimo publicly traded common stock held at the open of trading on May 4, 2022
• Trade dates, number of shares and prices for each purchase or acquisition during the class period (May 4, 2022, through Aug. 8, 2023)
• Trade dates, number of shares and prices for each sale from May 4, 2022, through the close of trading on Nov. 6, 2023
• Total shares held as of the close of trading on Nov. 6, 2023

Class members must also provide documentation to support their transactions in Masimo publicly traded common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing transactional and holding information

Payout options

• Physical check

$33.75 million settlement fund

The $33,750,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $8,437,500
• Attorneys' expenses: Up to $400,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: April 14, 2026
• Deadline to file a claim: April 28, 2026
• Fairness hearing: May 5, 2026

When is the Masimo securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Masimo Corp. and certain executives made false and misleading statements and omissions regarding its health care business, the acquisition and integration of Sound United, and related financial disclosures. The plaintiffs claimed these statements artificially inflated Masimo's stock price and caused investor losses when corrective information entered the market.

Masimo denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Claim form