Politan Capital Management Gears Up for Second Proxy Battle at Masimo Amid Legal Dispute with Apple

Key Points

• Politan Capital Management is set to initiate a second proxy battle at Masimo Corp, nominating two former medical device executives for board seats.
• Masimo is currently in a legal dispute with Apple Inc. (AAPL) over alleged theft of blood-oxygen level technology, which has led to Apple disabling the feature in some of its products.
• The proxy battle and lawsuit could significantly impact Masimo's governance and its competitive standing in the industry.

In this news

In a strategic move to strengthen its influence, Politan Capital Management is preparing for a second proxy battle to secure two additional board seats at Masimo Corp, building on its previous victory of two seats last year. The activist investor has proposed William Jellison and Darlene Solomon, both seasoned professionals from the medical device sector, as candidates for Masimo's board. Politan's actions come as a critique of Masimo's financial strategies and governance, especially in light of the company's controversial acquisition of Sound United.

Amidst this corporate maneuvering, Masimo is embroiled in a legal tussle with tech giant Apple Inc. (AAPL). The lawsuit, filed in October, accuses Apple of misappropriating trade secrets related to blood-oxygen level monitoring technology, a feature that Apple subsequently disabled in some of its smartwatches. This legal conflict underscores the heightened competition and sensitivity surrounding intellectual property in the tech and healthcare industries.

While the outcome of the proxy battle and the legal dispute remains uncertain, these events could have significant implications for Masimo's future direction and its interactions with industry competitors like Apple (AAPL). As the situation develops, stakeholders are closely monitoring the potential shifts in governance and market dynamics that may arise from these confrontations.