OSI Zapped By Investor Suit Over Nude TSA Body Scanners
By Ed Beeson
Law360, New York (April 16, 2014, 6:22 PM ET) -- A disgruntled OSI Systems Inc. shareholder on Tuesday sued the security technology maker’s board of directors, accusing them of misconduct that cost OSI $60 million in Transportation Security Administration contracts and threatened its ability to do business with the federal government again.
At issue in the case are OSI's contract with the TSA to supply it with airport body scanners, and the fallout that ensued after the machines were found to show passengers as naked when they were being scanned. OSI investor Marc Hagan alleges that...