Masimo Faces Federal Investigation Over Potential Securities Law Violations

Masimo Corporation, a global medical technology company, is under investigation by law firm Glancy Prongay & Murray LLP for potential violations of federal securities laws following a Department of Justice subpoena and an 11.8% drop in its stock price. The investigation, sparked by concerns over the company's Rad-G and Rad-97 products, aims to determine whether Masimo violated securities laws, with potential implications for investors and the broader financial market. This description focuses on the primary topic of the investigation, the main entity of Masimo Corporation, and the context of the Department of Justice subpoena and stock price drop. It also highlights the significant actions and consequences of the investigation, including the potential implications for investors and the financial market. The description provides objective and relevant details that will guide the AI in creating an accurate visual representation of the article's content.

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Masimo Faces Federal Investigation Over Potential Securities Law Violations

Masimo Faces Federal Investigation Over Potential Securities Law Violations

Masimo Corporation (NASDAQ: MASI) is under investigation by law firm Glancy Prongay & Murray LLP (GPM) for possible violations of federal securities laws. The investigation follows a Department of Justice (DOJ) subpoena and an 11.8% drop in Masimo's stock price on May 8, 2024.

Why this matters: This investigation has significant implications for investors and the broader financial market, as it raises concerns about corporate transparency and accountability. If Masimo is found to have violated securities laws, it could lead to a loss of trust in the company and the industry as a whole, with potential ripple effects on the stock market.

On May 7, 2024, Masimo disclosed that it had received a subpoena from the DOJ in February, seeking documents and information related to the company's Rad-G and Rad-97 products. The subpoena requested information about complaints surrounding the products and Masimo's decision to recall select Rad-G products in 2024.

Following this disclosure, Masimo's stock price fell $15.98, or 11.8%, to close at $120.02 on May 8, 2024, injuring investors. GPM's investigation aims to determine whether Masimo violated federal securities laws.

GPM encourages investors who suffered losses on their Masimo investments to contact the firm to learn more about their legal rights and options. "Persons with non-public information regarding Masimo should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program," GPM stated. The SEC Whistleblower Program offers rewards of up to 30% of any successful recovery made by the SEC.

Masimo Corporation, founded in 1989, is a global medical technology company that develops, manufactures, and markets noninvasive patient monitoring technologies. The company's products are used in hospitals, long-term care facilities, physician offices, and homes worldwide.

The investigation into Masimo's potential federal securities law violations comes at a time of heightened scrutiny for public companies. The DOJ subpoena and subsequent stock price drop have raised concerns among investors and legal experts. As the investigation unfolds, it will be crucial to determine the extent and nature of any violations and their impact on Masimo's investors.

Key Takeaways

  • Masimo Corporation under investigation for possible federal securities law violations.
  • DOJ subpoena and 11.8% stock price drop spark investigation.
  • Investigation focuses on Rad-G and Rad-97 products and recall.
  • GPM encourages investors who suffered losses to contact the firm.
  • SEC Whistleblower Program offers rewards of up to 30% of successful recovery.