OSI wins case over claim of business fraud.A federal jury last week awarded $125 million in damages to Hawthorne-based OSI Systems OSI Systems, Inc. (NASDAQ: OSIS) is a worldwide company based in California that develops and markets security and inspection systems such as airport security X-ray machines and metal detectors, medical monitoring and anesthesia systems, and optoelectronic devices. Inc. after it argued that a business dispute caused it to unfairly lose potential baggage-screening business after the September 2001 terrorist attacks. A jury in U.S. District Court in Manhattan on May 24 awarded $33 million in compensatory damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. and $92.6 million in punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. , finding that New York-based L-3 Communications Inc. engaged in fraud as the two companies sought to acquire a third company. The company, Perkin Elmer Security Detection Systems, wanted to deal with one buyer, and both companies agreed to acquire it together. OSI (1) (Open System Interconnection) An ISO standard for worldwide communications that defines a framework for implementing protocols in seven layers. Control is passed from one layer to the next, starting at the application layer in one station, proceeding to the , which makes airport security-detection systems, said L-3 did not deliver on its promise to buy the assets of Perkin Elmer, and then give OSI all the fights to the baggage screening business. "Acquiring the Perkin Elmer business was an opportunity of a lifetime for OSI," OSI attorney Howard Rubinroit told the jury in his closing argument, according to the Associated Press. "And if L-3 hadn't fooled around, hadn't lied, hadn't breached on its fiduciary duty ... OSI could have gotten those machines in the middle of the 9-11 rush to put machines into the airports and exploited that opportunity." The jury also found that OSI had breached a confidentiality agreement and awarded L-3 nominal damages Minimal money damages awarded to an individual in an action where the person has not suffered any substantial injury or loss for which he or she must be compensated. of $1, OSI said in a statement. L-3 Communications plans to appeal the verdict. |
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