Safirstein Metcalf LLP Announces that A Class Action Has Been Filed Against Obalon Therapeutics, Inc. – OBLN
Safirstein Metcalf LLP announces that a class action lawsuit has been filed against Obalon Therapeutics, Inc. (NASDAQ:OBLN) and certain of its officers, on behalf of shareholders who purchased or acquired Obalon securities during the class period between October 5, 2016 and January 23, 2018, both dates inclusive.
If you purchased or acquired Obalon securities during the class period, and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP by using the form located on this page, call us at 1-800-221-0015, or email us at info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than April 16, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The Complaint alleges that throughout the Class Period, Defendants made materially misleading and false statements and/or failed to disclose that: the Company recognized revenue in violation of Generally Accepted Accounting Principles (“GAAP”); that the Company lacked adequate internal controls over accounting and financial reporting; and that, as a result of the foregoing, the Company’s financial statements and Defendants’ statements about Obalon’s business, operations, and prospects, were materially false and misleading at all relevant times.
On January 23, 2018, Obalon announced that a whistleblower contacted KPMG LLP, the company’s independent auditors, to allege that Obalon had improperly recognized revenue during the company’s fourth fiscal quarter of 2017. As a result, Obalon canceled its previously announced offering of 5,454,545 shares of its common stock at a price of $5.50 per share and said that its Audit Committee would investigate the allegations. Following this news, Obalon’s stock fell nearly 77% from its IPO price of $15.00 per share to close at only $3.46 per share on January 23, 2018.