Strategy in TECH...
Pomerantz Law has announced it is launching an investigation of Sonos, Inc (Nasdaq: SONO) on behalf of investors. The firm says that this action is being taken to investigate claims surrounding the company’s handling of its 2024 app disaster and whether certain Sonos officers and/or directors “have engaged in securities fraud or other unlawful business practices.”
Strata-gee has learned that the U.S. District Court in the District of Utah has granted a Joint Motion to Dismiss all claims between Snap One, LLC (now part of Resideo) and AVA, Inc. The motion is the result of a negotiated settlement between the parties. This solves one-half of a lawsuit originally filed in August 2023 between Snap One, LLC (plaintiff) versus AVA, Inc. (defendant), and Josh.ai, Inc. (defendant).
Josh.ai is not part of this settlement so that case carries on.
In a new report last week, we learned that the Securities and Exchange Commission (SEC) has launched an investigation into RTW Investments over its role in an “empty voting” scheme related to the Masimo Corp. proxy battle which concluded in September at the Masimo Annual Stockholders Meeting. Masimo, now under new board management, has accused former CEO Joe Kiani and RTW of colluding in an empty voting scheme to try and manipulate a board election in their favor and deprive shareholders of their voting rights.
Last week, a jury was convened for a special trial to determine reasonable damages in the matter of GeigTech East Bay LLC v. Lutron Electronics Co., Inc. GeigTech, the plaintiff in this case is the manufacturer of motorized shade products marketed under the J Geiger brand, an independent company owned by Savant (and which is not a party to this litigation). Lutron has already been found to have infringed on certain patents held by Geigtech and the original jury’s large damages award was set aside by the judge who found it to be excessive. This new trial was held to determine a more reasonable damages amount.
In a recent filing with the Securities and Exchange Commission, the new Masimo (Nasdaq: MASI) Board of Directors reaffirmed its non-GAAP 3Q and full-year financial guidance as previously provided by the company to investors. It also notified the commission that the Board has officially terminated the employment of former CEO Joe Kiani.
Perhaps most surprisingly, it has additionally filed a major lawsuit against Joe Kiani and RTW Investments alleging, among other things, that they colluded to create a group that violated federal securities laws.
More patent decisions are being handed down as several long-running patent lawsuits between Masimo Corporation (Nasdaq: MASI) and Apple Incorporated (Nasdaq: AAPL) wrap up. Last week, a jury in the matter of Apple Inc. (Plaintiff) v. Masimo Corporation and Sound United LLC (Defendants) rendered a verdict on a case where Apple accused Masimo of infringing on six of its Apple Watch patents.
Technically, Apple got a win…but realistically, it was a huge victory for Masimo.
While many things have changed in the wake of Joe Kiani’s exit from Masimo Corporation (Nasdaq: MASI) – and many more changes are likely still to come – one thing continues on, the many lawsuits existing between Masimo and Apple Inc (Nasdaq: AAPL). And in the last few days, we have learned of two significant developments in that regard. One is a significant win for Masimo…and the other a significant win for Apple.
However, the war between these combatants continues…
In a public press release and a filing with the Securities and Exchange Commission (SEC), Masimo Corporation (Nasdaq: MASI) revealed that CEO, Chairman and Founder Joe Kiani resigned his position as CEO on September 19, 2024, in the wake of learning that William Jellison and Darlene Solomon, both Politan nominees, had been elected to the Board of Directors by a decisive margin. The Board has appointed an interim CEO and launched a search for a new permanent CEO.
It was a long bloody battle and the outcome was less predictable this time around, due to allegations of vote manipulation and a high intensity – if often misguided – vigorous defense put on by Masimo CEO Joe Kiani and his management team. But now we know the result – Masimo shareholders voted in both of the Politan-backed candidates for nomination to the Board in a sweeping win for activist investor Quentin Koffey and Politan Capital Management. Chairman Joe Kiani, on the other hand, lost his Board seat.
Despite explosions going off everywhere all around the combatants, Masimo Corporation’s 2024 Annual Stockholders Meeting will in fact take place as rescheduled tomorrow, September 19, 2024. It has been a long and bloody battle to get to this point and it is not entirely clear who will prevail. But both sides took a last shot at reaching out to investors to try and gain their votes.
Politan’s swing was a little more powerful as it announced it would expand its lawsuit in the Delaware Court of the Chancery – with a new party to be sued, based on evidence it uncovered as part of Masimo’s lawsuit against it in California District Court.
