NEW YORK, Dec. 17, 2013
/PRNewswire/ -- Bernstein Liebhard LLP today announced that a class
action lawsuit has been commenced in the United States District
Court for the Central District of California on behalf of purchasers of
securities (the "Class") of OSI Systems, Inc. ("OSI") (NASDAQ:
OSIS) during the period of January 24,
2012 and December 6, 2013 (the
"Class Period").
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OSI produces medical monitoring and anesthesia systems, security
and inspection systems, and lasers, optics, and optoelectronic
components.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or
misleading statements and/or failed to disclose that: (i) the
Company manipulated operational tests of its Advanced Imaging
Technology by selectively picking the best sensors, causing the
test to be unrepresentative of the scanners already deployed
at airports; (ii) the Company's products raised strong privacy
concerns and were subject to disqualification for use in airport
security checkpoints; (iii) the Company manufactured its products
with parts that directly violated contracts with the Transportation
Security Administration ("TSA"), thereby risking cancellation of
the contracts; and (iv) as a result of the above, the Company's
financial statements were materially false and misleading at all
relevant times.
On November 14, 2012, after the
market closed, various news sources, including Bloomberg News
reported that a Congressman disclosed that the Company may have
committed fraud by "knowingly manipulating" the results of an
operational test in connection with the Company's Advanced Imaging
Technology ("AIT"), otherwise commonly known as body
scanners. Moreover, Bloomberg News cited to an executive vice
president of the Company who revealed that its Rapiscan unit had
received a so-called "show cause" letter from the TSA on
November 9, 2012, seeking detailed
information about the testing of technology used in its body
scanners. On this news, OSI shares declined $21.40 per share or 28%, to close at $54.89 per share on November 15, 2012.
On January 22, 2013, the TSA
reported that it had ended its contract with the Company –, and
that OSI would have to bear the costs of removing all Rapiscan full
body scanners from airports – because TSA administrators concluded
that the Company could not meet a Congressional deadline to produce
generic passenger images. On this news, the Company's shares
fell $14.03 per share to $57.33, a one day decline of over 19%.
Thereafter, on December 6, 2013,
the TSA canceled a $60 million
contract for the Company's carry-on baggage screening equipment,
with the possibility of a future ban on contracting with the
Department of Homeland Security. The reason for the canceled
contract and future ban was that a part in the Company's baggage
scanning machine was manufactured in China, violating TSA security policies.
On this news, the Company's shares fell $21.69 per share to $43.63, a decline of over 33% on December 6, 2013.
Plaintiffs seek to recover damages on behalf of all Class
members who invested in OSI securities during the Class
Period. If you invested in OSI securities as described above,
and either lost money on the transaction or still hold the
security, you may wish to join in this action to serve as lead
plaintiff. In order to do so, you must meet certain
requirements set forth in the applicable law and file appropriate
papers no later than January 10,
2014.
A "lead plaintiff" is a representative party that acts on behalf
of other class members in directing the litigation. In order
to be appointed lead plaintiff, the court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members
may together serve as lead plaintiff. Your ability to share
in any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. You may retain Bernstein
Liebhard LLP, or other counsel of your choice, to serve as your
counsel in this action.
If you are interested in discussing your rights as an OSI
shareholder and/or have information relating to the matter, please
contact Joseph R. Seidman, Jr. at
(877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard LLP has pursued hundreds of securities,
consumer and shareholder rights cases and recovered over
$3 billion for its clients. It
has been named to The National Law Journal's "Plaintiffs'
Hot List" in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the
court for the United States District Court for the Central District
of California.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2013 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http://www.bernlieb.com
(212) 779-1414
seidman@bernlieb.com
SOURCE Bernstein Liebhard LLP