NEW YORK - (NewMediaWire) - September 30, 2020 - Faruqi & Faruqi, LLP, a leading minority and certified woman-owned national securities law firm, is investigating claims against OneSpan Inc. (“OneSpan” or the “Company”) (NASDAQ:OSPN) and reminds investors of the October 19, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in OneSpan stock or options between May 9, 2018 and August 11, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/OSPN. There is no cost or obligation to you.
You can also contact Faruqi & Faruqi partner James Wilson toll free at 877-247-4292 or 212-983-9330 (Ext. 1310) or by emailing him at firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of all those who purchased OneSpan securities between May 9, 2018 and August 11, 2020 (the “Class Period”). The case, Almendariz v. OneSpan Inc. et al., No. 10-cv-04906 was filed on August 20, 2020, and has been assigned to Judge Joan B. Gottschall.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing 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, during pre-market hours, OneSpan postponed its second quarter 2020 earnings release and conference call by one week, attributing the delay to prior period revenue recognition problems relating to certain software license contracts spread out over the quarters from the first quarter of 2018 to the first quarter of 2020. OneSpan further stated that “[t]he net contract assets that originated from a portion of these contracts in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue.”
On this news, the Company’s stock price fell from $32.50 per share on August 4, 2020 to $30.79 per share on August 5, 2020: a $1.71 or 5.26% drop.
Then on August 11, 2020, during after-market hours, OneSpan disclosed that it would not timely file its quarterly report for the quarter ended June 30, 2020, with the SEC; reported that same quarter year-over-year revenues had declined; and withdrew its full year 2020 earnings guidance, which the Company had affirmed one quarter earlier.
On this news, the Company’s stock price fell from $31.20 per share on August 11, 2020 to $18.84 per share on August 12, 2020: a $12.36 or 39.62% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding OneSpan’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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