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Securities

Aug. 21, 2025

Judge allows Masimo suit over claimed shareholder collusion scheme

A judge upheld Masimo's conspiracy suit, finding sufficient evidence that ex-CEO Joe Kiani and RTW Investments colluded in an "empty voting" scheme to surpass ownership thresholds and influence a board election.

Judge allows Masimo suit over claimed shareholder collusion scheme
Michael E. Swartz of Quinn Emanuel Urquhart & Sullivan LLP

A federal judge in Santa Ana upheld Masimo Corporation's "empty voting" conspiracy lawsuit, finding the company sufficiently alleged its founder and investors secretly colluded to sway a board election.

Although Masimo's founder and ex-CEO, Joe Kiani, was voluntarily dismissed from the suit to streamline the case, U.S. District Judge James V. Selna found in an order Tuesday that there was enough in the suit to make reasonable conclusions that Kiani and RTW Invest...

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