Hedge fund industry trade association the MFA has weighed in on one of the investment world’s most closely watched legal cases by backing efforts by activist hedge fund Politan Capital Management to reverse “draconian” amendments to medical device company Masimo Corp’s bylaws, according to a report by Reuters.
Masimo Corp’s new bylaws mean that any activist looking to nominate directors at the company would have to disclose the identities of the fund’s limited partners and future plans to nominate candidates elsewhere, information that is normally closely guarded by hedge funds.
In an amicus curiae, or ‘friend of the court brief’, filed on Thursday, the MFA has expressed “serious concerns” about the bylaws and argues that if the court rules that they are enforcible, the provisions would “have a direct negative impact on MFA’s members, their investors and stockholders more broadly.”
Politan Capital Management, which currently owns an 8.9% stake in Masimo and has hinted at plans to seek board seats at the $9.1 billion medical device maker, filed a law suite over the bylaw changes in Delaware Chancery Court back in October.
