Masimo said on Wednesday founder Joe Kiani has decided to step down as the medical device maker's CEO, days after shareholders voted to remove him from the company's board following a bitter proxy battle with activist hedge fund Politan Capital Management.

Masimo stock jumped Wednesday after Chief Executive Joe Kiani resigned. But, importantly, the company's other executives stayed on board.

Masimo Corporation (NASDAQ:MASI) shares are trading higher on Wednesday. Michelle Brennan, a current member of Masimo’s Board, has taken on the role of interim Chief Executive Officer, after Joe Kiani announced his resignation as CEO.

In what could become a new twist in the ongoing patent dispute over the Apple Watch’s Blood Oxygen sensor, the CEO of Masimo, the plaintiff company that has thus far been successful in its case against Apple,

Masimo CEO Joe Kiani may have waged and won a patent dispute against Apple over its blood oxygen sensor, he has stepped down after losing a battle with hedge fund Politan Capital Management.

Joe Kiani’s reign at Masimo Corp. abruptly ended following a vote at the annual shareholders meeting on Sept. 19 that saw Kiani, Masimo’s founder and CEO, ousted from the board as part of a hard-fought battle with activist investor Politan Capital Management.

Masimo today confirmed the resignation of founder and CEO Joe Kiani after last week's shareholder vote ousted him as board chair.

Apple and Masimo have been battling it out in court after the company specializing in health technologies managed to