San Diego, CA -- (ReleaseWire) -- 01/14/2014 -- An investigation on behalf of investors who currently hold shares of OSI Systems, Inc. (NASDAQ:OSIS) was announced concerning whether certain directors and officers of OSI Systems, Inc. breached their fiduciary duties and caused damage to the company and NASDAQ:OSIS stockholders.
Investors who are current long term investors in OSI Systems, Inc. (NASDAQ:OSIS) shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in OSI Systems, Inc. (NASDAQ:OSIS) stocks follows a lawsuit that was filed recently against OSI Systems, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:OSIS stocks concerns whether certain OSI Systems officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Central District of California the plaintiff alleges that OSI Systems, Inc. violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff alleges that between January 24, 2012 and December 6, 2013 , defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that OSI Systems, Inc. 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, that OSI Systems, Inc.'s products raised strong privacy concerns and were subject to disqualification for use in airport security checkpoints, that OSI Systems, Inc. manufactured its products with parts that directly violated contracts with the U.S. Transportation Security Administration (TSA), thereby risking cancellation of the contracts, and that 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 reported that a key congressman disclosed OSI Systems, Inc. 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.
On January 22, 2013, the TSA reported that it had ended its contract with OSI Systems, Inc., and that OSI Systems, Inc. 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 December 9, 2013, OSI Systems, Inc. announced that its security division, Rapiscan Systems, provided an update on the delivery order recently terminated by the TSA.
Shares of OSI Systems, Inc. declined from $77.29 per share on November 29, 2013, to $40.17 per share on December 9, 2013.
On January 10, 2014, NASDAQ:OSIS shares closed at $57.04 per share.
Those who purchased shares of OSI Systems, Inc. have certain options and should contact the Shareholders Foundation.
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