Masimo Leadership Mishandled Acquisition, Inventory, Suit Says

Executives and directors at Masimo Corp. are responsible for the health monitor maker’s ill-fated purchase of a consumer audio company, slumping sales, and misrepresentations about those problems, an investor alleges in a new suit.

Masimo’s stock price declined several times in July and August 2023 after the company announced disappointing second-quarter revenue, subjecting it to an investor class action, shareholder Linda McClellan said. She filed her derivative suit Wednesday in the US District Court for the Southern District of California.

Masimo’s $1.03 billion acquisition of Sound United, completed in April 2022, set the stage for the directors’ and executives’ ...