NEW YORK, Jan. 24, 2014
/PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit
against OSI Systems, Inc. ("OSI Systems" or the "Company") (NASDAQ:
OSIS) and certain of its officers. The class action, filed in
United States District Court, Central District of California, and docketed under 13-cv-9171-MWF,
is on behalf of a class consisting of all persons or entities who
purchased or otherwise acquired securities of OSI Systems between
January 24, 2012 and December 6, 2013 both dates inclusive (the "Class
Period"). This class action seeks to recover damages against the
Company and certain of its officers and directors as a result of
alleged violations of the federal securities laws pursuant to
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and
Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased OSI Systems securities
during the Class Period, you have until February 10, 2014 to ask the Court to appoint you
as Lead Plaintiff for the class. A copy of the Complaint can
be obtained at www.pomerantzlaw.com. To discuss this
action, contact Robert S. Willoughby
at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
OSI Systems 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 test of its Advanced Imaging Technology by
selectively picking the best sensors, causing the test not to be
representative 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 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 key congressman disclosed 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 Transportation
Security Administration ("TSA") on November
9, 2012, seeking detailed information about the testing of
technology used in its body scanners. On this news, OSI
Systems 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 Systems would have to bear the costs of removing all Rapiscan
full body scanners from airports, because TSA administrators
concluded 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 United States Transportation Security Administration 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 is 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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz LLP