SAN DIEGO & HAWTHORNE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of OSI Systems, Inc. (NasdaqGS: OSIS) breached their fiduciary duties to shareholders. OSI 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-apr-2018
OSI Systems Accused of Obtaining Major Contract Through Bribery
Shareholders filed a stockholder derivative complaint on April 23, 2018, against the company's officers and directors on behalf of OSI for alleged breach of fiduciary duty and other violations of law. According to the complaint, in August 2013, OSI announced that it had entered into a 15-year agreement – valued between $150 and $250 million – to provide turnkey cargo and vehicle security screening services in Albania. 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.
On December 6, 2017, Muddy Waters Research reported that OSI obtained the contract through corruption and accused OSI of engaging in improper sales and cash payments to government officials, making the company vulnerable to potential civil and criminal liability. On February 1, 2018, OSI revealed that the U.S. Securities and Exchange Commission and the U.S. Attorney's Office for the Central District of California are investigating OSI's compliance with the Foreign Corrupt Practices Act and trading in OSI's securities. OSI's market capitalization has declined significantly since the Muddy Waters report was published—in November 2017, OSI had a market capitalization of $1.6 billion and it has since decreased to $1.264 billion as of April 12, 2018.
OSI Systems Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, 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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