BOSTON, Sept. 02, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockleviton.com), a national securities litigation firm, reminds investors that securities class actions have been filed against J2 Global, Inc. (NASDAQ: JCOM), Velocity Financial, Inc. (NYSE: VEL), and OneSpan Inc. (NASDAQ: OSPN). Shareholders interested in serving as lead plaintiff have until the deadlines listed below to move the court. Further details about the cases are described below. There is no cost or obligation to you.
JCOM Shareholders – Click Here: https://www.blockleviton.com/cases/jcom
VEL Shareholders – Click Here: https://www.blockleviton.com/cases/velocity
OSPN Shareholders – Click Here: https://www.blockleviton.com/cases/ospn
J2 Global, Inc. (NASDAQ: JCOM) – Lead Plaintiff Deadline of September 8, 2020
J2 Global is a digital media roll-up that has acquired 186 businesses since its inception. Its CEO has described the Company’s “acquisition system” as its “single great competitive advantage.” On Dec. 12, 2018, however, Glasshouse Research released a forensic report stating J2's “acquisition accounting remains suspect,” and concluding “that management has touted many farce operating metrics that do not show J2's true economic value.” Then on June 30, 2020, analyst Hindenburg Research issued a series of tweets and published a report regarding J2 Global entitled “J2 Global: Troubling Related Party Transactions, Looming Impairments and a Suspicious History of Insider Enrichment Spanning Decades.” In its report, Hindenburg writes that “J2’s opaque acquisition approach has opened the door to egregious insider self-enrichment, which we approximate totals $117 million to $172 million based on publicly available information.” Hindenburg continued that J2 had recently committed $200 million of shareholder cash to a newly-formed investment vehicle run by its Chairman, who has a track record of venture investment failures. Hindenburg further stated that it found decades of intertwined financial interests between board members and executives, calling several of J2’s directors’ independence into question. Hindenburg also raised “tricky accounting,” noting that J2 has never taken a goodwill impairment, yet the Company’s subsidiaries have reported multiple material goodwill impairments that do not appear to coincide with J2’s financials. On this news, the price of J2 Global’s shares plummeted.
Velocity Financial, Inc. (NYSE: VEL) – Lead Plaintiff Deadline of September 28, 2020
On January 17, 2020, Velocity Financial commenced its initial public offering (“IPO”) of 7.25 million shares at $13.00 each, raising approximately $94 million. Since the IPO, Velocity Financial’s stock price has plummeted, closing as low as $2.47 per share, representing a decline of approximately 81% from the IPO price.
The lawsuit was filed in the U.S. District Court for the Central District of California, and is captioned Berg v. Velocity Financial, Inc., et al., No. 2:20-cv-06780. The suit alleges that the IPO materials failed to disclose that a substantial and growing proportion of Velocity Financial’s loans were non-performing and/or on non-accrual status, and failed to disclose any information whatsoever about the onset of the coronavirus pandemic and its actual and potential implications for Velocity Financial’s finances and prospects.
OneSpan Inc. (NASDAQ: OSPN) – Lead Plaintiff Deadline of October 19, 2020
Recently, OneSpan has lauded its “record revenues” and nearly 20% year-over-year revenue growth, identifying its software license business as its “key driver” for the success. The Company has also assured investors that its internal controls over financial reporting where effective. On August 4, 2020, OneSpan postponed its second quarter 2020 earnings release and conference call by one week, blaming the delay on prior period revenue recognition problems relating to certain software license contracts. OneSpan stated that “[t]he net contract asserts that originated from a portion of these assets in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue.” Then on August 11, 2020, OneSpan: (1) announced that it would not timely file its second quarter 2020 financial statement on Form 10-Q with the SEC; (2) announced that the revenue recognition problems lasted multiple years; (3) reported that same quarter year-over-year revenues had declined; and (4) withdrew its full year 2020 earnings guidance just one quarter after reiterating it. On this news, shares of OneSpan stock fell approximately 40% on August 12, 2020.
If you purchased or acquired shares of JCOM, VEL, or OSPN and have questions about your legal rights or possess information relevant to these matters, please contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockleviton.com, or via the links provided above.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
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Phone: (617) 398-5600
Email: cases@blockleviton.com
SOURCE: Block & Leviton LLP
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