OSI Systems, an American company based in California that develops and markets security and inspection systems, said in a securities filing that the SEC and Department of Justice have commenced investigations into potential violations of the Foreign Corrupt Practices Act.

The launch of the SEC investigation followed a report by a short seller, the company disclosed in a securities filing. Specifically, the disclosure follows a critical report conducted by Muddy Waters claiming OSI Systems “obtained a major turnkey contract in Albania through corruption. It is likely that OSIS’s accounts are misstated as a result.”

Additionally, OSI Systems said the U.S. Attorney’s Office for the Central District of California has also said it intends to request information “regarding FCPA compliance matters.”

In addition, the SEC and Department of Justice are investigating “trading in the company’s securities and have subpoenaed information regarding trading by executives, directors and employees, as well as company operations and disclosures in and around the time of certain trades,” the securities filing stated. In response to this investigation, OSI Systems said it “has taken action with respect to a senior-level employee.”

“The company places a high priority on compliance with its anti-corruption and securities trading policies and is cooperating with each of the government investigations.”