San Francisco, California--(Newsfile Corp. - October 16, 2020) - Hagens Berman urges OneSpan Inc. (NASDAQ: OSPN) investors to submit their losses now. Only three days remains until the October 19, 2020 lead plaintiff deadline in a securities fraud class action that has been filed against the company and senior executives.
OneSpan Inc. (OSPN) Securities Class Action:
The Complaint alleges that throughout the Class Period, Defendants misrepresented and concealed that: (i) OneSpan had inadequate disclosure controls and procedures over financial reporting; (ii) as a result, OneSpan overstated its revenue relating to certain contracts with customers involving software licenses in its financial statements for Q1 2018 - Q1 2020; and (iii) OneSpan downplayed the negative impacts of errors in its financial statements.
The market allegedly began to learn the truth on Aug. 4, 2020, when OneSpan postponed its Q2 2020 earnings release and conference call by 1 week, blaming the delay on prior period revenue recognition problems relating to certain software license contracts.
Then, according to the complaint, on Aug. 11, 2020, OneSpan (1) announced it would not timely file its Q2 2020 financial statements on Form 10-Q with the SEC, (2) revealed the revenue recognition problems stretched from Q1 2018 - Q1 2019, (3) reported that same quarter year-over-year revenues had declined, and (4) withdrew its FY 2020 earnings guidance.
On this news, OneSpan's common share price fell $12.36 per share, or nearly 40%.
On Aug. 14, 2020, the company issued a quarterly report revealing that it (1) overstated its current contract assets for the fiscal year-ended Dec. 31, 2019 by about 34%, and (2) understated net losses for the three and six months ended June 30, 2019.
Significantly, prior to the alleged disclosures that caused OSPN shares to drop, T. Kendall Hunt, OneSpan's founder, former CEO and former Executive Chairman sold appx. $56 million of his own OneSpan shares at artificially inflated prices. On Sept. 14, 2020, OneSpan announced that (i) Hunt had tendered his resignation; and (ii) that the Company had changed its stock trading policies to prohibit Directors and immediate family members from selling their shares while serving on the Board.
"We're focused on investors' losses and proving OneSpan intentionally cooked its books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a OneSpan investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding OneSpan should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email OSPN@hbsslaw.com.
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