Shareholder Alert -- The Law Firm Girard Gibbs LLP Launches an Investigation into Claims on Behalf of Shareholders of OSI Sys...
10 December 2013 - 10:00AM
Business Wire
Girard Gibbs LLP, a national law firm specializing in securities
litigation, is investigating potential claims on behalf of
purchasers of OSI Systems, Inc. (“OSI”) (NASDAQ: OSIS) common stock
or securities.
The investigation concerns whether OSI and certain of its
officers and/or directors violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934. OSI, based in Hawthorne,
California, is a vertically integrated designer and manufacturer of
specialized electronic systems, including X-Ray technologies.
On December 5, 2013, OSI announced that its security division,
Rapiscan Systems (“Rapiscan”), was notified by the U.S.
Transportation Security Administration (“TSA”) that an order for an
Advanced Technology X-Ray based systems was being terminated for
default. As a result, OSI de-booked the order which had a value of
approximately $60 million.
According to the Associated Press, “OSI said the contract was
terminated because it used a new X-ray generator component from
China in its device. This violated the company's contract because
it did not obtain TSA's approval in advance before using the new
part.” On December 9, 2013, OSI disclosed that “while the component
change was vetted by Rapiscan’s internal quality assurance, it did
not meet the contractual requirement of obtaining TSA's approval in
advance.”
On this news, shares of OSI fell $17.86 or more than 27% during
intraday trading on December 9, 2013.
If you purchased OSI shares or are aware of any facts relating
to this investigation, or you would like to learn more information
about this investigation, you may visit the website or contact John
Kehoe of Girard Gibbs LLP at (415) 544-6283 or by email at
jak@girardgibbs.com.
Girard Gibbs LLP is one of the nation’s leading law firms
representing individual and institutional investors in securities
fraud class actions and litigation to correct abusive corporate
governance practices, breaches of fiduciary duty and proxy
violations. For more information, please access the firm’s web site
at www.GirardGibbs.com.
Girard Gibbs LLPJohn Kehoe, 415-544-6283jak@girardgibbs.com
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