Masimo CEO shares confidential info with investor before public release

In March, Masimo CEO Joe Kiani disclosed confidential information to Naveen Yalamanchi, a portfolio manager at RTW Investments, just 12 hours before it was made public. This revelation is part of ongoing litigation involving Masimo and activist investor Politan, which has been critical of the company's performance and Kiani's past acquisition decisions. The court documents, unsealed recently, include an email from Kiani urging Yalamanchi not to trade on the information until the official announcement was released the next morning. The email, titled "Confidential PR and 8K for tomorrow before the market opens," contained attachments detailing the upcoming press release. This situation raises concerns regarding compliance with SEC regulations, specifically Regulation FD, which mandates that any material nonpublic information shared with select individuals must also be disclosed to the public promptly. Politan has been actively challenging Masimo's management, having previously secured two board seats in a prior proxy battle. The activist investor has criticized the company's strategic decisions and has been advocating for a potential spinoff of its consumer business. The recent proxy fight initiated by Politan aims to further influence the company's direction and leadership. Masimo is also known for its legal disputes with Apple over the use of its pulse-oximetry technology. The implications of Kiani's actions and the ongoing proxy battle could significantly impact the company's governance and future strategies, as stakeholders closely monitor the unfolding events.