Kaplan Fox Announces Investigation of OSI Systems Inc.
NEW YORK, Dec. 6, 2017 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating OSI Systems Inc. ("OSI" or the "Company") (Nasdaq: OSIS) on behalf of investors who purchased OSI common stock.
On December 6, 2017, Bloomberg reported that "[s]hares of OSI Systems Inc. plunged after investor Carson Block said his firm Muddy Waters Capital was shorting the technology and medical supplier, calling it 'rotten to the core' and saying it was over-reliant on a sales contract with questionable pricing."
"The major major contract these guys have is a turnkey contract in Mexico, and that's up for renewal," Block said during an interview on Bloomberg TV. "The pricing on that appears to be egregious and a lot of investors don't understand the economics of this." "Block also accused the company of obtaining a contract in Albania through corruption. 'If Mexico got renewed on the same terms, you're not going to see the bottom fall out of it. But if there is scrutiny of this contract, if the pricing is lowered a decent bit, that will obviously wash through, if our estimates are anywhere near correct, to the P&L in a big way.'"
According to Bloomberg, "[a] spokesman for OSI declined to comment when reached Wednesday morning. OSI describes itself as a supplier of electronic systems for medical, security, defense and aerospace uses. Security products make up more than half of its sales, according to data compiled by Bloomberg. Over the last five years through Tuesday, the shares have returned 39 percent."
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has decades of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP or its investigation, you may contact firstname.lastname@example.org or visit our website at www.kaplanfox.com.
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