|[December 21, 2013]
Lieff Cabraser Announces Class Action Litigation Against OSI Systems, Inc. - OSIS
SAN FRANCISCO --(Business Wire)--
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class
action litigation has been brought on behalf of all those who purchased
or otherwise acquired the securities of OSI Systems, Inc. ("OSI" or
the "Company") (NasdaqGS:OSIS) between January 24, 2012 and December 6,
2013, inclusive (the "Class Period").
If you purchased or otherwise acquired the securities of OSI during the
Class Period, you may move the Court for appointment as lead plaintiff
by no later than February 10, 2014. A lead plaintiff is a representative
party who acts on behalf of other class members in directing the
litigation. Your share of any recovery in the action will not be
affected by your decision of whether to seek appointment as lead
plaintiff. You may retain Lieff Cabraser, or other attorneys, as your
counsel in the action.
investors who wish to learn more about the action and how to seek
appointment as lead plaintiff should click here or contact Sharon M.
Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the OSI Securiies Class Litigation
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 and failed to disclose
material adverse facts regarding the Company's business, operational and
compliance policies, in violation of federal securities laws.
Specifically, the complaint alleges that defendants manipulated the
results of an operational test of OSI's Advanced Imaging Technology
("AIT") by selectively picking the best sensors, causing the test not to
be representative of the scanners already deployed at airports. The
complaint also alleges that OSI manufactured its products with parts
that directly violated contracts with the Transportation Security
Administration ("TSA"), thereby risking cancellation of the contracts.
On November 14, 2012, after the market closed, Bloomberg (News - Alert) News reported
that a key congressman disclosed that OSI may have committed fraud by
"knowingly manipulating" the results of an operational test in
connection with the Company's AIT. Moreover, Bloomberg News cited to an
executive vice president of the Company who revealed that OSI's Rapiscan
unit had received a show-cause letter from the TSA on November 9, 2012,
requesting detailed information about the testing of technology used in
its body scanners. On this news, the price of OSI shares fell $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 OSI, and that OSI would have to pay the costs of removing all
Rapiscan full body scanners from airports. On this news, the price of
OSI shares fell over 19%, or $14.03 per share, from a closing price of
$71.36 on January 23, 2013 to close at $57.33 per share on January 24,
On December 5, 2013, after markets closed, the TSA canceled a $60
million contract for OSI's carry-on baggage screening equipment, and
indicated a potential future ban on contracting with the Department of
Homeland Security, because the Company's baggage scanning machine was
manufactured in China, in violation of TSA security policies. On this
news, the price of the Company's shares fell nearly 10% from a closing
price of $71.72 on December 5, 2013, to close at $64.75 on December 6,
2013, and then on December 9, 2013, the Company's shares dropped nearly
28%, or $18.21 per share, to close at $47.38 per share on extremely high
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco,
New York, and Nashville, is a nationally recognized law firm committed
to advancing the rights of investors and promoting corporate
Since 2003, the National Law Journal has selected Lieff Cabraser
as one of the top plaintiffs' law firms in the nation. In compiling the
list, the National Law Journal examined recent verdicts and
settlements in addition to overall track records. Lieff Cabraser is one
of only two plaintiffs' law firms in the United States to receive this
honor for the last ten consecutive years.
For more information about Lieff Cabraser and the firm's representation
of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
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