OSI Systems shares fell after Culper Research's short-selling report.

OSI Systems, Inc. (NASDAQ:OSIS) shares fell 5% following Culper Research's announcement of a short position on the company. The comprehensive study by Culper claims that OSI Systems significantly misrepresented its financial status and progress on a major contract involving the installation of vehicle and cargo scanning systems at border crossings with the Mexican Ministry of Defense (SEDENA).

Culper's findings indicate that despite evidence suggesting OSI Systems is lagging behind in its obligations, the company may have prematurely recognized a substantial portion of revenue from the SEDENA contract. The research firm’s examination, which included import permit records, site visits, and interviews, revealed that only a small fraction of the contracted systems are operational, with many missing or defective. Additionally, concerns are raised about potential violations of the Foreign Corrupt Practices Act (FCPA) related to OSI's business dealings in Mexico.