Newman Ferrara LLP Announces Investigation of OSI Systems, Inc.
21 December 2013 - 6:40AM
Business Wire
Newman Ferrara LLP is conducting an investigation on behalf of
shareholders of OSI Systems, Inc. (“OSI”) (Nasdaq:OSIS) into
potential breaches of fiduciary duty by OSI’s Board of
Directors.
On November 14, 2012, various news sources, including Bloomberg
News, reported that Congressman Mike Rogers, Chairman of the House
Transportation Security Subcommittee, had sent a letter dated
November 13, 2012, to the Transportation Security Administration
(“TSA”) stating that OSI “may have attempted to defraud the
government by knowingly manipulating an operational test” in
connection with OSI’s body scanners used for U.S. Airport security
screening. Specifically, tests may have been falsified on software
intended to stop OSI’s airport body-screening machines from
recording graphic images of travelers. On this news, OSI shares
declined $21.40 per share, or 28%, to a closing price of $54.89 per
share on November 15, 2012.
Thereafter, on December 6, 2013, the TSA canceled a $60 million
contract for carry-on baggage screening equipment that had been
awarded to OSI less than three months earlier, citing the
equipment’s use of unauthorized Chinese-made parts, in violation of
TSA security policies. According to U.S. lawmakers, OSI’s use of
the unauthorized, foreign component raises questions about whether
the equipment is vulnerable to sabotage or espionage. On this news,
OSI shares plummeted as much as 41%, the biggest intraday stock
drop in OSI’s history, to a trading low of $39.00 per share on
December 9, 2013.
Investors of OSI stock may contact Newman Ferrara attorney
Jeffrey M. Norton (jnorton@nfllp.com) to discuss this
investigation, their rights as OSI shareholders, or potential
remedies.
Whistleblowers: Persons with knowledge that may aid in
the investigation of this matter are encouraged to contact the
firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers
are protected from employer retaliation and may be entitled to as
much as 30 percent of the recovery if the information provided
leads to a successful action.
Newman Ferrara maintains a multifaceted practice based in New
York City with attorneys specializing in complex commercial and
multi-party litigation, securities fraud and shareholder
litigation, consumer protection, civil rights, and real estate. For
more information, please visit the firm website at
www.nfllp.com.
Newman Ferrara LLPJeffrey Norton, 212-619-5400Fax:
212-619-3090
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