Skip to content
Subscriber Only

OSI Tumbles on Possible Contract Ban for Chinese Parts

OSI Systems Inc. fell as much as 40 percent, the biggest intraday drop ever, after lawmakers said the company may face a ban on U.S. contracts for using unapproved Chinese-made parts in baggage-screening equipment.

The disclosure came after the Transportation Security Administration canceled a $60 million order last week. The TSA has resumed an effort to bar OSI’s Rapiscan Systems unit from future contracts, Representatives Michael McCaul, a Texas Republican, and Bennie Thompson, a Mississippi Democrat, said in a letter dated Dec. 6.