A derivative lawsuit alleging that Masimo Corp.'s board members improperly timed their stock option grants to coincide with an expected gain or drop in the medical device manufacturer's share price can proceed, a federal judge has ruled. The court held that in litigation where a director receives challenged stock options, he or she stands on both sides of the transaction, thereby excusing the shareholders from having to make a demand on the board prior to filing a claim.
Claims Over Masimo's Stock Options to Proceed in Federal Court
Delaware Business Court Insider
July 24, 2013