LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) reminds investors of the April 16, 2018 deadline to file a lead plaintiff motion in the class action filed on behalf of investors that purchased Obalon Therapeutics, Inc. (“Obalon” or the “Company”) (NASDAQ: OBLN) securities between October 5, 2016 and January 23, 2018, inclusive (the “Class Period”). Obalon investors have until April 16, 2018 to file a lead plaintiff motion.
To obtain information or actively participate in the class action, please visit the Obalon page on our website at www.glancylaw.com/case/obalon-therapeutics-inc. Investors that suffered losses on their Obalon investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights in this class action at 310-201-9150 or by email to email@example.com.
On January 23, 2018, Obalon issued a press release disclosing that “a purported whistleblower contacted KPMG LLP, the Company’s independent auditors, to make certain allegations relating to allegedly improper revenue recognition during the Company’s fourth fiscal quarter of 2017.” The Company further stated that “Obalon’s Audit Committee will oversee an internal investigation of these allegations.”
On this news, Obalon’s stock price fell $1.73 per share, or 33.3%, to close at $3.46 per share on January 23, 2018, on unusually heavy volume. The $3.46 closing price represented a total decline of $11.54, or nearly 77%, from the IPO price of $15.00 per share.
The filed complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that the Company recognized revenue in violation of Generally Accepted Accounting principles (“GAAP”); (2) that the Company lacked adequate internal controls over accounting and financial reporting; and (3) 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.
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If you purchased shares of Obalon, you may move the Court no later than April 16, 2018 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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