SAN DIEGO & HAWTHORNE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against OSI Systems, Inc. (NasdaqGS: OSIS). The complaint is brought on behalf of all purchasers of OSI Systems securities between August 21, 2013 and February 1, 2018, for alleged violations of the Securities Exchange Act of 1934 by OSI Systems' officers and directors. OSI Systems designs, manufactures, and sells electronic systems and components worldwide.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/osi-systems-inc-feb-2018
OSI Systems Accused of Obtaining Major Contract Through Corruption
According to the complaint, on August 21, 2013, OSI announced that it had entered into a 15-year agreement to provide turnkey cargo and vehicle security screening services in Albania. However, OSI officials failed to disclose that OSI transferred 49% of its project company associated with the Albania contract—the entity to which all rights and obligations under the contract belong and therefore worth millions—to a holding company owned by an Albanian doctor for consideration of less than $5.00. Muddy Waters Research brought this information to light on December 6, 2017, when it reported that OSI obtained the contract in Albania through corruption. Immediately following the Muddy Waters report, OSI emphatically denied Muddy Waters' claims, calling them misleading.
OSI stunned investors on February 1, 2018, when the company effectively admitted that the Muddy Waters report was accurate, disclosing that the SEC had commenced an investigation into the company's compliance with the Foreign Corrupt Practices Act ("FCPA") and the U.S. Department of Justice, through the U.S. Attorney's Office for the Central District of California ("DOJ"), had also announced its intention to request information from the company regarding FCPA compliance matters. OSI further revealed that the SEC and DOJ were investigating possible insider trading at the company and had subpoenaed information regarding trading by certain executives, directors, and employees. On this news, OSI's stock fell $12.00 per share, or 18%, to close at $54.60 per share on February 2, 2018.
OSI Systems Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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