OSIS SHAREHOLDER ALERT: The Law Firm of Wohl & Fruchter LLP Announces Investigation of OSI Systems, Inc.
December 10 2013 - 8:30AM
Business Wire
The law firm of Wohl & Fruchter LLP is investigating
possible violations of federal securities laws by officers and
directors of OSI Systems, Inc. (OSI) (NASDAQ:OSIS).
On December 5, 2013, OSI announced that its security division
subsidiary, Rapiscan Systems, Inc. (Rapiscan), was notified by the
U.S. Transportation Security Administration (TSA) that an order
placed with Rapiscan on September 26, 2013 for Advanced Technology
X-Ray (AT-2) detection systems was being terminated for default. As
a result, OSI de-booked this order, which had a value of
approximately $60 million.
According to Bloomberg News, in a letter dated December 6, 2013,
Representatives Michael McCaul, a Texas Republican, and Bennie
Thompson, a Mississippi Democrat, stated that the TSA has resumed
an effort to bar OSI’s Rapiscan Systems units from future
contracts.
On December 9, 2013, OSI stated that it believes that the TSA’s
termination of the AT-2 order resulted from Rapiscan's use of a
component manufactured in China without the TSA's prior approval,
as required under OSI’s contract with TSA. According to Bloomberg
News, lawmakers are concerned about whether the unapproved
component made the Rapiscan machines vulnerable to sabotage or
espionage, and the House Homeland Security Committee, as part of a
Congressional investigation, has asked the TSA for documents
relating to communications between OSI and the federal
government.
Upon the above news, OSIS shares have declined nearly 34% in
trading over the last two trading sessions.
Persons with relevant information, and OSIS shareholders with
questions about this investigation, are invited to contact the
attorney below, or our Firm by calling 866.833.6245.
Additional information is available on our website at:
http://www.wohlfruchter.com/cases/osis.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation
arising from fraud and other fiduciary breaches by corporate
managers, as well as other complex litigation matters. Please visit
our website, www.wohlfruchter.com, to learn more about our Firm, or
contact one of our partners.
This release may be deemed to constitute attorney
advertising.
Wohl & Fruchter LLPJ. Elazar Fruchter, 845.425.4658Toll Free
866.833.6245jfruchter@wohlfruchter.comwww.wohlfruchter.com
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