NEW YORK, Feb. 21, 2018 (GLOBE NEWSWIRE) -- Attorney Advertising-- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Obalon Therapeutics, Inc. ("Obalon" or the "Company") (NASDAQ:OBLN) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Obalon securities between October 5, 2016 and January 23, 2018, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: http://www.bgandg.com/obln.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
On January 23, 2018, Obalon announced that it would cancel its previously announced public offering of Obalon common stock after its independent auditor, KPMG LLP, received a complaint from a “purported whistleblower” alleging “improper revenue recognition during the Company's fourth fiscal quarter of 2017.” On this news, Obalon’s share price fell $1.73, or 33.33%, to close at $3.46 on January 23, 2018.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that: (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.
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: http://www.bgandg.com/obln 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 Obalon you have until April 16, 2018 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.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com