A tentative $15 million settlement has been reached in a class action shareholder suit brought against Hawthorne electronics device maker OSI Systems Inc. and top executives.
The suit alleged that OSI, Chief Executive Deepak Chopra, Chief Financial Officer Alan Edrick and Executive Vice President Ajay Mehra violated Securities and Exchange Commission rules by making false and misleading statements about OSI and federal contracts held by its security products division, Rapiscan Systems Inc. The statements, the suit alleged, caused OSI stock prices to artificially inflate and decline when the truth was revealed.
The parties reached a settlement through mediation, according to OSI’s 2015 annual report. OSI and its executives said in the report that they agreed to the settlement to avoid further expense, inconvenience, distractions and further risk, and that they conceded no wrongdoing.
According to Bernstein Litowitz Berger & Grossmann, the San Diego law firm representing the class, shareholders who bought OSI stock between Jan. 24, 2012 and Dec. 6, 2013 may be eligible to a share of the settlement.
The settlement is pending approval by the Federal District Court judge overseeing the case. A hearing on that is set for December.
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