On December 30, 2021, the United States District Court for the Central District of California preliminarily approved a settlement in the class action titled Longo, et al. v. OSI Systems, Inc., et al., Case No. 2:17-cv-08841-FMO-SKx (“Longo OSI Settlement”). On or about January 24, 2022, notice of the Longo OSI Settlement was sent to potential class members and disseminated through various media. The Longo OSI Settlement is unrelated to the settlement described on this website. To access information about the Longo OSI Settlement, please visit http://www.osisystemssecuritiessettlement.com.

The information contained on this web page is only a summary of information presented in more detail in the Notice of (I) Pendency of Class Action, Certification of Settlement Class, and Proposed Settlement; (II) Settlement Fairness Hearing; and (III) Motion for an Award of Attorneys’ Fees and Reimbursement of Litigation Expenses (the “Notice”), which you can access by clicking here. Since this website is just a summary, you should review the Notice for additional details.

Your Legal Rights Are Affected Whether You Act Or Do Not Act.  Please read the Notice carefully.

If you purchased or otherwise acquired the common stock of OSI Systems, Inc. (“OSI”) between January 24, 2012, and December 6, 2013, inclusive, and were damaged thereby, you could receive a payment from a class action settlement.   

The Court’s Settlement Hearing

A hearing will be held on December 7, 2015 at 10:00 a.m., before the Honorable Michael W. Fitzgerald at the United States District Court, Central District of California, United States Courthouse, Courtroom No. 1600, 312 North Spring Street, Los Angeles, CA 90012-4701, for the following purposes:  (a) to determine whether the proposed Settlement should be approved as fair, reasonable, and adequate; (ii) to determine whether the Judgment substantially in the form proposed by the Parties should be entered dismissing the Action with prejudice against the Defendants; (iii) to determine whether the proposed Plan of Allocation should be approved as fair and reasonable; and (iv) to determine whether the motion for an award of attorneys’ fees and reimbursement of Litigation Expenses to be filed by Lead Counsel Bernstein Litowitz Berger & Grossmann LLP should be approved.  The Court may change the date of the settlement hearing without providing another notice.  You do not need to attend the settlement hearing in order to be potentially eligible to receive a distribution from the Settlement Fund.

What is this case about?

OSI is a provider of specialized electronic systems for the homeland security, defense, and aerospace industries and its security division – Rapiscan – manufactures and sells security-screening and threat-detection products.  A portion of Rapiscan’s business is derived from contracts with the U.S. Government, including the Department of Homeland Security (“DHS”) and the Transportation Security Administration (“TSA”).

On May 20, 2014, Lead Plaintiff filed the Amended Class Action Complaint (the “Complaint”) asserting claims against Defendants under Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated by the United States Securities and Exchange Commission (“SEC”) thereunder, and against the Individual Defendants under Sections 20(a) and 20(A) of the Exchange Act.  The Complaint alleged that between January 24, 2012, and December 6, 2013, inclusive, Defendants made materially false and misleading statements about OSI and Rapiscan, and Rapiscan’s contracts with the U.S. Government related to body scanner software and checkpoint baggage scanners.  The Complaint further alleged that the prices of OSI securities were artificially inflated as a result of Defendants’ allegedly false and misleading statements, and declined when the truth was revealed.

Defendants are entering into the Stipulation solely to eliminate the uncertainty, burden and expense of further protracted litigation.  Each of the Defendants denies any wrongdoing, and, as described in and subject to the terms of the Stipulation, the Stipulation shall in no event be construed or deemed to be evidence of or an admission or concession on the part of any of the Defendants, or any other of the Defendants’ Releasees, with respect to any claim or allegation of any fault or liability or wrongdoing or damage whatsoever, or any infirmity in the defenses that the Defendants have, or could have, asserted.  Similarly, as described in and subject to the terms of the Stipulation, the Stipulation shall in no event be construed or deemed to be evidence of or an admission or concession on the part of Lead Plaintiff or any of the other Plaintiffs’ Releasees of any infirmity in any of the claims asserted in the Action, or an admission or concession that any of the Defendants’ defenses to liability had any merit..

The Settlement Benefits

Subject to Court approval, Lead Plaintiff, on behalf of itself and the Settlement Class, has agreed to settle the Action in exchange for a settlement payment of $15,000,000.00 in cash (the “Settlement Amount”) which has been deposited into an escrow account.  The Net Settlement Fund (i.e., the Settlement Amount plus any and all interest earned thereon (the “Settlement Fund”) less (a) any Taxes, (b) any Notice and Administration Costs, (c) any Litigation Expenses awarded by the Court, and (d) any attorneys’ fees awarded by the Court) will be distributed in accordance with a plan of allocation that is approved by the Court, which will determine how the Net Settlement Fund shall be allocated among members of the Settlement Class.  The proposed Plan of Allocation can be found on page 7 of the Notice.

The Rights of Members of the Settlement Class

If you are a member of the Settlement Class, you have the following options:

Submit a Proof of Claim Form

If you are a member of the Settlement Class, in order to be potentially eligible to receive a payment under the proposed Settlement, you must submit a Proof of Claim Form postmarked no later than January 15, 2016.  If you are a Settlement Class Member and do not submit a proper Proof of Claim Form, you will not be eligible to share in the distribution of the net proceeds of the Settlement but you will nevertheless be bound by any judgments or orders entered by the Court in the Action with respect to the Settlement.

Exclude yourself from the Settlement Class

If you are a member of the Settlement Class and wish to exclude yourself from the Settlement Class, you must submit a request for exclusion such that it is received no later than November 16, 2015, in accordance with the instructions set forth in the Notice.  If you properly exclude yourself from the Settlement Class, you will not be bound by any judgments or orders entered by the Court in the Action with respect to the Settlement and you will not be eligible to share in the proceeds of the Settlement.  If you do not exclude yourself from the Settlement Class, you will be bound by any judgments or orders entered by the Court in the Action with respect to the Settlement.

Object to the Settlement

Any objections to the proposed Settlement, the proposed Plan of Allocation, or Lead Counsel’s motion for attorneys’ fees and reimbursement of Litigation Expenses, must be filed with the Court and delivered to Lead Counsel and Defendants’ Counsel such that they are received no later than November 16, 2015, in accordance with the instructions set forth in the Notice.

Further Information:

This website and the Notice summarizes the proposed Settlement.  For more details regarding this Settlement please reference the Stipulation dated August 20, 2015, or other documents filed in the case under the “Court Documents” link on the left.  You may also contact the Claims Administrator or Lead Counsel for further information regarding this Settlement:

Lead Counsel:

Bernstein Litowitz Berger & Grossmann LLP

Timothy A. DeLange, Esq.

Niki L. Mendoza, Esq.

12481 High Bluff Drive

Suite 300

San Diego, CA  92130

(866) 648-2524

blbg@blbglaw.com

If you have questions, you may call the OSI Securities Settlement Help Line at 800-332-6198 or email info@osisecuritiessettlement.com.