Orange County Business Journal

Masimo Wins Summary Judgment in Whistleblower Suit

Vita Reed Thursday, October 3, 2013

Irvine-based Masimo Corp. today said that a federal court ruled in its favor in a whistleblower lawsuit that three of its former sales representatives filed against it.

The maker of patient monitors said that the U.S. District Court for the Central District of California, Southern Division, granted a summary judgment in its favor.

Former Masimo sales representatives Michael Ruhe, Kristine Serwitz and Vicente Catala had alleged Masimo knowingly made false claims in connection with its Pronto line of medical devices and the statements were material to claims for reimbursement submitted to federal payers such as Medicare.

The court ruled that the plaintiffs’ evidence didn’t demonstrate “any knowingly misleading statements or conduct by Masimo in connection withi its medical devices” and, at most, they showed that the device maker was aware of isolated complaints and anecdotal doctor feedback regarding the Pronto devices’ performance.

“Such evidence falls far short of demonstrating the knowing fraud required for liability under the False Claims Act,” U.S. District Judge Cormac Carney wrote in his motion to grant summary judgment to Masimo.

Masimo's shares closed down 1% to a market value of $1.52 billion in Nasdaq trading today.