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.
OSI 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 Securities 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 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, 2013.
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 trading volume.
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 responsibility.
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.
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