SAN DIEGO and HAWTHORNE, Calif., Dec. 20, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of OSI Systems, Inc. (NASDAQ: OSIS) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between January 24, 2012 and December 6, 2013 (the "Class Period"). OSI designs and manufactures electronic systems and components for homeland security, healthcare, defense, and aerospace markets.
OSI Accused of Manipulating Its Advance Image Technology Operational Test Results
Shares of OSI fell $21.40 per share, or 28%, to close at $54.89 per share on November 15, 2012, following a report by Bloomberg News that the results of an operational test in connection with the company's Advanced Imaging Technology, or body scanners, may have been knowingly manipulated by the company. OSI shares declined an additional $21.69 per share, or 33%, to close at $43.63 on December 6, 2013, when it was revealed that the U.S. Transportation Security Administration canceled a $60 million contract for OSI's carry-on bag screening equipment and threatened to ban future contracting with the Department of Homeland Security.
According to the complaint, OSI issued false and misleading statements regarding the company's business, operational, and compliance policies. In particular, the complaint charges that OSI made false and/or misleading statements and/or failed to disclose that the company's:
- operational test of its Advanced Imaging Technology were manipulated;
- products were subject to disqualification for use in airport security checkpoints because of strong privacy concerns; and
- contracts with the TSA were at risk for cancellation for containing parts that directly violated the terms of those contracts.
OSI Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in OSI and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/osi-systems-inc
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP