Apple Watch patent dispute: Masimo's leadership changes may prompt settlement
Joe Kiani, the founder and CEO of Masimo, a medical technology company specializing in patient monitoring solutions, has stepped down from his position. While Kiani's resignation comes amid an ongoing legal dispute with Apple regarding blood oxygen sensor technology in Apple Watches, reports suggest the departure is unrelated to the lawsuit. Instead, it follows a disagreement with hedge fund Politan Capital Management. According to Reuters, shareholders voted to remove Kiani from Masimo's board, leading to his departure.
Politan's influence and Kiani's pledge
Kiani's departure was the result of a proxy war initiated by Politan Capital Management after Masimo acquired Sound United for $1 billion. Politan, which holds a 9% stake in Masimo, was instrumental in nominating new board members following the acquisition. One of these nominees, Michelle Brennan, is now serving as the interim CEO of Masimo. Prior to his removal, Kiani had pledged to resign as CEO and sell his shares if investors replaced him with a nominee from Politan.
Kiani's exit might be a potential win for Apple
Masimo legal dispute with Apple led to a temporary ban on Apple Watch sales in the US, which was lifted after the tech giant disabled the disputed feature via software update. The dispute remains unresolved, with appeals in progress. Kiani's departure could lead to a shift in Masimo's strategic direction and approach to its legal battle with Apple. It remains to be seen if the new leadership will pursue a settlement with Apple or continue the legal fight.
