An investor received confidential information from Masimo CEO prior to the public release, according to a court filing.

• In March, Joe Kiani, Masimo CEO, disclosed confidential information to a significant investor 12 hours prior to its public release, as per court documents.
• On Friday, some of the documents were partially unsealed and are connected to the ongoing legal battle between Politan and Masimo.
• Masimo and Politan are currently engaged in their second proxy battle over devices used to monitor a person's oxygen levels.

According to court filings, CEO Joe Kiani of a medical-technology company disclosed confidential information to a major investor 12 hours before it was made public during a proxy battle with activist Politan.

On Friday, some of the documents were partially unsealed and are linked to the ongoing legal battle between Politan and Masimo, who produce devices for tracking the amount of oxygen in a person's blood. Politan aims to replace two directors, including Kiani, with its own nominees at a shareholder meeting scheduled for later this month.

The latest filing contains an email from Kiani to Dr. Naveen Yalamanchi, a portfolio manager at RTW Investments, regarding an upcoming announcement. Additionally, the unsealed documents reveal other communications between Kiani and RTW employees, a New York-based firm specializing in health care.

Politan has accused RTW of an alleged empty voting scheme, where it voted its shares in favor of management's director slate even though it no longer owned the underlying shares.

On Friday, other unsealed documents revealed that Masimo was aware of RTW's efforts. These documents include communications from Masimo advisors indicating that the company was aware RTW was accumulating a significant stake and was supportive of Kiani's leadership.

"I wanted to get your thoughts on this PR before we release it," Kiani wrote in an email titled "Confidential PR and 8K before the market opens."

Politan has initiated a second proxy fight and nominated two board members, as confirmed by a filing published the next day. Politan has criticized Masimo's underperformance and Kiani's acquisition of a consumer business two years ago, and has been pushing the company to consider a spinoff.

The Wall Street Journal reported that a second proxy fight was set to be launched the previous week.

Masimo is well-known for its legal battle with the company over its use of pulse-oximetry technology in the Apple Watch. Additionally, Kiani is a close friend of President Joe Biden and has contributed to his campaigns. One of Kiani's top advisors in the proxy fight is Greg Schultz, who served as Biden's campaign manager in 2020.

Kiani wrote in an email to Yalamanchi, "Please refrain from trading on anything until the press release is released, which will be published before the market opens tomorrow morning. The message includes two attachments and a timestamp indicating the publication time."

Under Regulation FD, a company must make any information it shares with certain individuals, such as large shareholders, immediately accessible to all.

An earlier proxy battle was launched by Politan at Masimo, resulting in the activist obtaining two board seats in 2023, including one for managing partner Quentin Koffey.

Neither Masimo nor Politan responded to requests for comment.

WATCH: Masimo CEO on potential split, proxy battle