Law Offices of Howard G. Smith reminds investors of the upcoming October 19, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased OneSpan Inc. (“OneSpan” or the “Company”) (NASDAQ: OSPN) securities between May 9, 2018 and August 11, 2020, inclusive (the “Class Period”).
Investors suffering losses on their OneSpan investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On August 4, 2020, OneSpan announced that it had identified errors relate to certain contracts with customers involving software licenses. As a result, the Company estimated that it had overstated revenue by $2 to $2.5 million between first quarter 2018 and first quarter 2020.
Then, on August 11, 2020, OneSpan disclosed that it could not timely file its quarterly report for the period ended June 30, 2020. According to the Company, 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. OneSpan also withdrew its fiscal 2020 guidance.
On this news, the Company’s shares fell $12.36, or nearly 40%, to close at $18.84 per share on August 12, 2020.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that 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) that 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) that OneSpan downplayed the negative impacts of errors in its financial statements; (5) that 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.
If you purchased or otherwise acquired OneSpan securities, you may move the Court no later than October 19, 2020, to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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