On May 7, 2024, after market hours, Masimo filed its quarterly report on Form 10-Q with Securities and Exchange Commission (“SEC”) which, among other things, announced that the “Company received a civil investigative demand from the DOJ [Department of Justice] pursuant to the False Claims Act, 31 U.S.C. §§ 3729-3733, dated March 25, 2024, seeking documents and information related to customer returns of the Company’s Rad-G® and Rad-97® products, including returns related to the Company’s recall of select Rad-G® products in 2024.”
On this news, Masimo’s stock price fell $15.98 per share, or 11.75%, to close at $120.02 per share on May 8, 2024, on unusually heavy trading volume.
