SAN DIEGO--(BUSINESS WIRE)--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether certain officers and directors of OSI Systems, Inc. (NasdaqGS: OSIS) violated state or federal laws after it was disclosed that the company may face a ban on contracts with the Transportation Safety Administration (TSA). OSI makes devices used for airport screenings and relies extensively on its contracts with TSA.

On Friday, the company disclosed that TSA canceled a $60 million order because OSI used a component manufactured in China without obtaining TSA’s approval, thus violating its contract. The company is now at risk of losing future orders as some have questioned whether OSI’s equipment is vulnerable to sabotage or espionage. Jim Baker, lead analyst at Johnson & Weaver, said, “This is not the first time OSI has had problems with TSA. The company should have foreseen the consequences of its decision.” In addition, “The company may now face liability for using unapproved Chinese products and knowingly engaging in conduct that violated contracts with TSA.”

On this news, the company’s stock closed down more than 26% on December 9, 2013.

If you have information that could assist in this investigation, or if you are a OSI Systems, Inc. shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonandweaver.com) at 619-230-0063, Ext. 118.

Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.