SAN FRANCISCO, Oct. 12, 2023 (GLOBE NEWSWIRE) — Hagens Berman urges Masimo Corporation (NASDAQ: MASI) investors who suffered substantial losses to submit your losses now.
Class Period: Feb. 28, 2023 – July 17, 2023
Lead Plaintiff Deadline: Oct. 23, 2023
Visit: www.hbsslaw.com/investor-fraud/MASI
Contact An Attorney Now: MASI@hbsslaw.com
844-916-0895
Masimo Corporation (MASI) Securities Fraud Class Action:
The complaint alleges Masimo made false or misleading statements and failed to disclose that: (1) Masimo created the false impression that it possessed reliable information about its sales pipeline; (2) its forecasting process did not adequately account for the potential loss of sensor sales to customers; and (3) its forecasting process did not adequately account for a decline in demand for premium and luxury audio categories.
Investors began to learn the truth on July 17, 2023, when Masimo announced preliminary results for Q2 2023. The company reported lower than expected preliminary revenue and disclosed it would be cutting costs in the latter half of the year. The company blamed the healthcare-related revenue shortfall on delays in large orders, high labor costs straining hospital budgets, conversion delays, and elevated sensor inventories due to past discounting. The company blamed the audio-related revenue shortfall on the decline in demand previously seen in lower-end consumer categories extending into premium and luxury audio categories.
This news resulted in a wave of analyst downgrades, with one analyst writing “[w]e’re not often left flummoxed, but today’s pre-announcement certainly qualifies[,]” and questioning “the persistence of elevated channel inventory (and secondarily how/why this inventory managed to move as high as it did)[.]”
These events sent the price of Masimo shares sharply lower.
“We’re focused on investors’ losses and whether Masimo may have engaged in improper channel stuffing,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Masimo and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Masimo case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Masimo should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MASI@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
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