Precise new data for the reaction $K^- p to pi^0 Lambda$ are presented in the c.m. energy range 1565 to 1600 MeV. Our analysis of these data sheds new light on claims for the $Sigma(1580){3/2}^-$ resonance, which (if it exists with the specified quantum numbers) must be an exotic baryon because of its very low mass. Our results show no evidence for this state.