Perhaps OSI Systems Should Have Some Recourse
As highlighted in this prior post, in late 2017 Muddy Waters Research (a short seller investment firm) accused OSI Systems (a California based company that develops and markets security and inspection systems such as airport security X-ray machines and metal detectors) of corruption in Albania. (See here for more). A Muddy Waters representative confidently stated that it had “smoking-gun proof that, when this company got a turn-key contract a few years ago in Albania, worth $150-$250 million top line, that they paid a bribe or kickback of almost half of that concession. To me, this is damning evidence.”
Thereafter, OSI’s stock price fell approximately 30% and sure as dogs bark and the sun rises in the east, plaintiff’s lawyers mobilized and very soon securities fraud class actions and derivative actions were filed which closely tracked the allegations set forth in the short-seller’s report.
From The Dockets
This post highlights updates to Foreign Corrupt Practices Act related civil actions involving OSI Systems and Misonix.
OSI Systems
As highlighted in this prior post, in late 2017 investment firm Muddy Waters Research accused OSI Systems (a California based company that develops and markets security and inspection systems such as airport security X-ray machines and metal detectors) of corruption in Albania. As often happens when a company becomes the subject of FCPA scrutiny, plaintiff’s lawyers representing shareholder filed securities fraud class action lawsuits.
Friday Roundup
Funny, scrutiny alerts and updates, and for the reading stack. It’s all here in the Friday roundup.
Funny
According to the FCPA Blog, there is “nothing too complicated or expensive” about FCPA compliance.
That’s funny because on a daily basis FCPA Blog content is flanked by approximately 20 blinking and flashing ads from FCPA Inc. participants.
Friday Roundup
Scrutiny alerts, post-enforcement action compliance enhancements, my own two cents, reality TV, and for the reading stack. It’s all here in the Friday roundup.
Scrutiny Alerts
OSI Systems
This December 2017 post highlighted the unusual origin of OSI Systems FCPA scrutiny – a short seller published a research report accusing the company of corruption. Yesterday, OSI Systems formally disclosed:
Friday Roundup
Funny, also funny, corruption in the anti-corruption industry, the head of the DOJ’s FCPA Unit writes, reasons for the general increase in FCPA enforcement, scrutiny alert, asset recovery, and for the reading stack. It’s all here in the Friday roundup.
Funny
This recent FCPA Blog post asked “what’s the most important FCPA case ever” and stated: “The Africa Sting showed how far the feds would go to make a splashy FCPA case. But the final lesson was that using a big sting to concoct a supposed industry-wide conspiracy was a bad idea. The judge didn’t buy it, and neither did a couple of juries.”
Funny that the post doesn’t mention that the the person at the center of this failed, manufactured case was its current Contributing Editor and training partner Richard Bistrong.