San Francisco, Dec. 9, 2013 – Gibbs Law Group LLP, a national law firm specializing in securities litigation, is investigating potential claims on behalf of purchasers of OSI Systems, Inc. (“OSI”) (NASDAQ: OSIS) common stock or securities.
The investigation concerns whether OSI and certain of its officers and/or directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. OSI, based in Hawthorne, California, is a vertically integrated designer and manufacturer of specialized electronic systems, including X-Ray technologies.
On December 5, 2013, OSI announced that its security division, Rapiscan Systems (“Rapiscan”), was notified by the U.S. Transportation Security Administration (“TSA”) that an order for an Advanced Technology X-Ray based systems was being terminated for default. As a result, OSI de-booked the order which had a value of approximately $60 million.
According to the Associated Press, “OSI said the contract was terminated because it used a new X-ray generator component from China in its device. This violated the company’s contract because it did not obtain TSA’s approval in advance before using the new part.” On December 9, 2013, OSI disclosed that “while the component change was vetted by Rapiscan’s internal quality assurance, it did not meet the contractual requirement of obtaining TSA’s approval in advance.”
On this news, shares of OSI fell $17.86 or more than 27% during intraday trading on December 9, 2013.
If you purchased OSI shares or are aware of any facts relating to this investigation, or you would like to learn more information about this investigation, you may contact John Kehoe of Gibbs Law Group LLP at (415) 544-6283 or by email at email@example.com.
Gibbs Law Group LLP is one of the nation’s leading law firms representing individual and institutional investors in securities fraud class actions and litigation to correct abusive corporate governance practices, breaches of fiduciary duty and proxy violations. For more information, please access the firm’s web site at www.GirardGibbs.com.