OSI Systems receives class action lawsuit

A law firm recently filed a class action claim on behalf of shareholders of a homeland security components company.

Bernstein Liebhard, LLP, explained that it filed a class action lawsuit against OSI Systems, Inc., in the U.S. District Court for the Central District of California. This includes all shareholders who purchased stock in the company between the period of Jan. 24, 2012, and Dec. 6, 2013.

OSI Systems allegedly made a number of statements that were either false or misleading related to its business operations. This included changing the results of its advanced imaging technology tests, as well as its products being unable to be used at airports because of privacy worries.

There also are allegations that the products it created were made with parts that were in violation of standards in its contract with the Transportation Security Administration, which made the cancellation of its contract with the company a possibility.

The TSA terminated its contract with OSI Systems on Jan. 22, 2013, while it also nullified a contract with the company on Dec. 6, 2013 that was worth $60 million. The first issue was due to OSI Systems not meeting a deadline set out by the federal government, while the second problem was because it used parts that were manufactured in China, something that was not allowed by the security terms at TSA.

OSI Systems experienced a significant decline in stock pricing during these periods, from more than $70 per share down to less than $45 per share.

It is possible for shareholders to apply to be lead plaintiff, which would require interested parties to meet specific terms that would abide by laws in place. It is necessary to do this by at least Jan. 10, 2014.

Stockholders who want to learn more about this case, including their rights or other information related to these issues, should speak with law firm member Joseph Seidman, Jr. He can be reached by phone or email.

Investigation underway for OSI Systems
Another investigation is looking into the aforementioned allegations, which also could become a lawsuit down the line.

The law office of Newman Ferrara, LLP, noted it is conducting the action, as there may be breaches of fiduciary duty present. Shareholders can speak with firm member Jeffrey Norton by email to discuss the process, while whistleblowers are also welcome to come forward.