The Vazquez v. Masimo settlement is a $33.75 million agreement resolving a securities fraud class action against Masimo Corporation and four of its executives, with final approval entered on May 13, 2026. It covers investors who bought Masimo common stock between May 4, 2022, and August 8, 2023. The defendants denied any wrongdoing.1PR Newswire. Labaton Keller Sucharow Announces Settlement of Class Action in Vazquez v. Masimo Corporation
Who Is in the Class
The class covers anyone who purchased Masimo common stock during the period from May 4, 2022, through August 8, 2023. The case was filed in the United States District Court for the Southern District of California under case number 3:23-cv-01546, with the Boston Retirement System and two Central Pennsylvania Teamsters pension funds appointed as lead plaintiffs.2Labaton Keller Sucharow LLP. Order Granting in Part and Denying in Part Defendants’ Motion to Dismiss
Alongside Masimo itself, the amended complaint named CEO Joe Kiani, CFO Micah Young, and executives Bilal Muhsin and Eli Kammerman. The claims arose under Section 10(b) of the Securities Exchange Act, SEC Rule 10b-5, and Section 20(a).3Labaton Keller Sucharow LLP. Vazquez v. Masimo Corporation
What the Lawsuit Alleged
The plaintiffs alleged Masimo executives created a false impression that they had reliable visibility into the company’s sales pipeline and revenue trajectory following the April 2022 acquisition of consumer audio firm Sound United. According to the complaint, internal forecasting failed to account for a coming loss of sensor sales among existing healthcare customers and a decline in demand for premium and luxury audio products. In the alternative, the complaint alleged executives knew sales were slipping and ignored it.4Rosen Legal. Masimo Corporation
The alleged truth surfaced on July 17, 2023, when Masimo released preliminary second-quarter results well below the $550–565 million revenue and $3.59–3.69 EPS ranges it had projected, and cut its full-year outlook for both healthcare and audio segments. The stock fell from $147.16 to $117.73 in a single session, a drop of nearly 20%.5Levi & Korsinsky, LLP. Masimo Corporation Class Action Lawsuit
How the $33.75 Million Is Divided
The settlement fund pays administration costs first, then attorneys’ fees of up to $8,437,500 (25% of the fund) and litigation expenses of up to $400,000. What remains is distributed pro rata to eligible class members who filed valid claims, under a plan of allocation the court approved on May 13, 2026.6ClaimDepot. Masimo Securities Settlement Individual recoveries depend on when shares were bought and sold within the class period and on the total volume of claims filed.
Deadlines and Approval Timeline
The court granted preliminary approval on February 2, 2026. Class members had until April 14, 2026, to opt out or object, and until April 28, 2026, to file a claim. A fairness hearing was held on May 11, 2026, before Magistrate Judge Daniel E. Butcher, and the final approval order and judgment followed on May 13, 2026.7PACER Monitor. Vazquez v. Masimo Corporation et al Investors who missed the claim deadline are not eligible for a payment.
When Payments Go Out
Distribution is being handled by claims administrator A.B. Data, Ltd. Payments will be issued after all claims are processed and any appeals from the final judgment are resolved.8Levi & Korsinsky, LLP. Masimo Corporation Settlement Claimants with questions about the status of a submitted claim should contact A.B. Data directly.
Background on the Sound United Deal
Masimo, a Carlsbad, California-based maker of pulse oximetry and patient monitoring technology, closed its $1 billion acquisition of Sound United in April 2022. Sound United’s brands included Bowers & Wilkins, Denon, Marantz, and Polk Audio.9Masimo Investor Relations. Masimo Closes Acquisition of Sound United Masimo’s stock fell roughly 38% after the deal was announced, erasing about $5.1 billion in market value.10Strata-gee. Masimo Acquisition of Sound United Spurs Ugly Activist Shareholder Lawsuit The company sold Sound United to Harman International, a Samsung subsidiary, for $350 million in cash, closing on September 23, 2025.11Stock Titan. Masimo Corp Reports Material Event That resale is separate from this settlement and does not change what claimants receive.