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.

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

Following a hearing on December 7, 2015, the Court granted final approval of a settlement of all claims for $15 million in cash.

The claims administration was completed in July 2018. On September 13, 2018, the Motion for Approval of Distribution Plan was filed. On September 25, 2018, the Court entered the Order Approving the Distribution Plan. The first distribution of the net settlement fund occurred in November 2018. The second distribution occurred in April 2022. The third distribution occurred in January 2024.

Further Information:

This website and the Notice summarizes the 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.

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