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.
Copyright Business Wire 2013