San Francisco, Calif .– (Newsfile Corp. – October 11, 2020) – Hagens Berman urges OneSpan Inc. (NASDAQ: OSPN) investors to file their losses now. A securities fraud class lawsuit has been filed and certain investors may have valuable claims.
Teaching time: May 9, 2018 – August 11, 2020
Lead plaintiff deadline: October 19, 2020
Contact an attorney now: [email protected]
Class action lawsuit against securities of OneSpan Inc. (OSPN):
The complaint alleges that throughout the classroom, Defendants misrepresented and concealed: (i) OneSpan had inadequate disclosure controls and procedures for financial reporting; (ii) As a result, OneSpan has overestimated its revenue from certain contracts with customers that include software licenses in its financial statements for the first quarter of 2018 – first quarter of 2020. and (iii) OneSpan has downplayed the negative impact of errors in its financial statements.
The market allegedly began learning the truth on August 4, 2020 when OneSpan postponed its results release and conference call for the second quarter of 2020 by a week, attributing the delay to revenue recognition issues in the previous period related to certain software license agreements .
According to the complaint, OneSpan (1) announced on August 11, 2020 that it would not file its financial statements for Q2 2020 with the SEC on Form 10-Q in a timely manner. (2) revealed the issues with revenue recognition from Q1 2018 – In Q1 2019, (3) reported that same quarter revenue was down year over year, and (4) withdrew its 2020 fiscal year earnings guidance.
In the news, OneSpan's common stock price fell $ 12.36 per share, or nearly 40%.
On August 14, 2020, the company released a quarterly report indicating that it (1) overvalued its current contract assets by approximately 34% for the fiscal year ended December 31, 2019, and (2) undervalued the net losses for the three companies, and six months to June 30, 2019.
Significantly, T. Kendall Hunt, founder, former CEO and former Executive Chairman of OneSpan, sold approximately $ 56 million of his own OneSpan shares at artificially inflated prices prior to the alleged disclosures that led to the decline in OSPN shares. On September 14, 2020, OneSpan announced that (i) Hunt submitted its resignation; and (ii) that the Company has changed its share dealing policy to prohibit directors and immediate family members from selling their shares while serving on the Board of Directors.
"We're focusing on investor losses and proving that OneSpan boiled its books on purpose," said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a OneSpan investor, click here to discuss your statutory rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about OneSpan should consider their options to help with the investigation or to use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to [email protected]
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The source version of this press release can be found at https://www.newsfilecorp.com/release/65703