WAYNE, Pa., Jan. 13, 2014 /PRNewswire/ -- Ryan &
Maniskas, LLP announces that a class action lawsuit has been filed
in the United States District Court for the United States District
Court for the Central District of California on behalf of purchasers of OSI
Systems, Inc. ("OSI" or the "Company") (NASDAQ: OSIS) common stock
during the period between January 24,
2012 and December 6, 2013,
inclusive (the "Class Period").
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For more information regarding this class action suit, please
contact Ryan & Maniskas, LLP (Richard
A. Maniskas, Esquire) toll-free at (877) 316-3218 or by
email at rmaniskas@rmclasslaw.com or visit:
www.rmclasslaw.com/cases/osis.
OSI Systems 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
regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose: (1) the Company 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; (2) the Company's
products raised strong privacy concerns and were subject to
disqualification for use in airport security checkpoints; (3) the
Company manufactured its products with parts that directly violated
contracts with the TSA, thereby risking cancellation of the
contracts; and, (4) 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, including Bloomberg News
reported that a key congressman disclosed the Company 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.
Moreover, Bloomberg News cited to an executive vice president of
the Company who revealed that its Rapiscan unit had received a
so-called "show cause" letter from the Transportation Security
Administration ("TSA") on November 9,
2012, seeking detailed information about the testing of
technology used in its body scanners. On this news, OSI Systems
shares declined $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 the Company, and that
OSI Systems 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 this news, the Company's
shares fell $14.03 per share to
$57.33, a one day decline of over
19%.
Thereafter, on December 6, 2013,
the United States Transportation Security Administration canceled a
$60 million contract for the
company's carry-on baggage screening equipment, with the
possibility of a future ban on contracting with the Department of
Homeland Security. The reason for the canceled contract and future
ban is that a part in the company's baggage scanning machine was
manufactured in China, violating
TSA security policies. On this news, the Company's shares fell
$21.69 per share to $43.63, a decline of over 33% on December 6, 2013.
If you are a member of the class, you may, no later than
February 10, 2014, request that the
Court appoint you as lead plaintiff of the class. A lead
plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members, and
that the class member will adequately represent the class.
Under certain circumstances, one or more class members may
together serve as "lead plaintiff." Your ability to share in
any recovery is not, however, affected by the decision whether or
not to serve as a lead plaintiff. You may retain Ryan &
Maniskas, LLP or other counsel of your choice, to serve as your
counsel in this action.
For more information about the case or to participate online,
please visit: www.rmclasslaw.com/cases/osis or contact Richard A. Maniskas, Esquire toll-free at (877)
316-3218, or by e-mail at rmaniskas@rmclasslaw.com. For more
information about class action cases in general or to learn more
about Ryan & Maniskas, LLP, please visit our website:
www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation
firm. Ryan & Maniskas, LLP is devoted to protecting the
interests of individual and institutional investors in shareholder
actions in state and federal courts nationwide.
CONTACT:
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Ryan &
Maniskas, LLP
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Richard A.
Maniskas, Esquire
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995 Old Eagle
School Rd., Suite 311
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Wayne, PA
19087
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484-588-5516
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877-316-3218
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www.rmclasslaw.com/cases/osis
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rmaniskas@rmclasslaw.com
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SOURCE Ryan & Maniskas, LLP