Joe Kiani, founder and former CEO of Masimo Corp., has filed a notice against the company’s six Politan-affiliated board of directors for over $100 million in statutory penalties.
Kiani on Feb. 28 submitted a Private Attorneys General Act (PAGA) notice to the California Labor & Workforce Development Agency, alleging the directors failed to pay him a $400 million severance payout.
It’s the latest development in the long running feud between Kiani and the activist investor that ousted Kiani as chairman following a proxy battle, resulting in Politan gaining majority control of the board.
After resigning as CEO last September, Kiani filed a lawsuit against Masimo to secure the pay package, which includes a base salary of $1 million per year. He’s also asking for options to purchase 300,000 shares of Masimo common stock at $38.76 per share; Masimo today closed at $190.63 and a $10.3 billion market cap.
“In addition to the lawsuit he brought to enforce the terms of his employment agreement, Mr. Kiani is seeking to hold the company and each of its six Politan-affiliated directors accountable for their unlawful conduct under California’s Private Attorneys General Act,” a spokesperson for Kiani said in a statement.
The board members, per the PAGA notice, are liable for more than $100 million in statutory penalties.
Masimo declined to comment at this time.
The company previously said it believes it will “prevail” in its dispute against Kiani for the reason that it terminated his employment for cause, among other reasons, according to a Feb. 25 filing.
