NEW YORK--(BUSINESS WIRE)--Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against OneSpan Inc. ("OneSpan" or the "Company") (NASDAQ: OSPN) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired OneSpan securities between May 9, 2018, and August 11, 2020, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/ospn.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) OneSpan had inadequate disclosure controls and procedures and internal control over financial reporting; (2) as a result, OneSpan overstated its revenue relating to certain contracts with customers involving software licenses in its financial statements spread out over the quarters from the first quarter of 2018 to the first quarter of 2020; (3) as a result, it was foreseeably likely that the Company would eventually have to delay one or more scheduled earnings releases, conference calls, and/or financial filings with the SEC; (4) OneSpan downplayed the negative impacts of errors in its financial statements; (5) all the foregoing, once revealed, was foreseeably likely to have a material negative impact on the Company's financial results and reputation; and (6) as a result, the Company's public statements were materially false and misleading at all relevant times.
On August 4, 2020, OneSpan revealed that it found errors relating to certain contracts with customers involving software licenses. Consequently, OneSpan estimated that it overstated revenue by $2 to $2.5 million between first quarter 2018 and first quarter 2020.
Then, on August 11, 2020, OneSpan announced that it would delay filing its quarterly report for the period ended June 30, 2020. OneSpan said that its revenue had been overstated by $2.2 million from the first quarter in the year ended December 31, 2018 to the quarter ended March 31, 2020. The Company then withdrew its 2020 fiscal guidance. Following this news, OneSpan stock dropped $12.36 per share, or roughly 40%, to close at $18.84 on August 12, 2020.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/ospn or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in OneSpan you have until October 19, 2020 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.