Airport scanner maker’s stock tumbles after analyst trashes it

OSI Techniques, the maker of airport scanning methods, misplaced almost a 3rd of its worth on Wednesday after brief-vendor Carson Block accused it of underhanded practices.

“We expect this firm is rotten to the core,” Block’s agency, Muddy Waters, stated in a 19-web page report, which was accompanied by a ten-minute video.

A possible $250 million contract OSI signed with Albania was possible obtained by means of a bribe, Muddy Waters claimed, citing the agency’s analysis and hypothesis in native media stories.

The brief-promoting agency additionally raised questions on a contract OSI has in Mexico, claiming it was “considerably overpriced and oversold when it comes to capabilities.”

Late Wednesday, the corporate, based mostly in Hawthorne, Calif., denied any wrongdoing.

“Our turnkey safety inspection packages in Mexico and in Albania have been the results of public tenders,” OSI stated in a press release. It stated it “wouldn’t typically reply to deceptive allegations from brief sellers, [but] this specific report has had an undue influence within the public sphere and warrants a response.”

OSI shares fell 29.2 %, to $fifty nine.fifty two. Previous to Wednesday’s drop, the inventory was up 10.four % for the yr.

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