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Obalon Therapeutics, Inc. (OBLN)

NASDAQ:OBLN

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 Investing In Obalon Therapeutics, Inc. To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Obalon Therapeutics, Inc. (“Obalon” or the “Company”) (NASDAQ:OBLN) of the April 16, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in Obalon stock or options and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you.  You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of all those who purchased Obalon securities: (1) pursuant and/or traceable to Obalon’s Registration Statement and Prospectus, issued in connection with the Company’s initial public offering on or about October 5, 2016 (the “IPO”); and/or (2) between October 5, 2016 and January 23, 2018 (the “Class Period”).  The case, Cook v. Obalon Therapeutics, Inc. et al, No. 3:18-cv-00407 was filed on February 22, 2018, and has been assigned to Judge Anthony Joseph Battaglia.

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: (i) the Company recognized revenue in violation of Generally Accepted Accounting Principles (“GAAP”); (ii) the Company lacked adequate internal controls over accounting and financial reporting; and (iii) as a result, Obalon’s public statements were materially false and misleading at all relevant times.

Specifically, on January 23, 2018, Obalon issued a press release revealing, in part, that “a purported whistleblower contacted KPMG LLP, the Company’s independent auditors, to make certain allegations relating to allegedly improper revenue recognition during the Company’s fourth fiscal quarter of 2017.”

On this news, Obalon’s share price fell from $5.19 per share on January 22, 2018 to a closing price of $3.46 on January 23, 2018—a $1.73 or a 33.33% drop.  In addition, Obalon’s closing price of $3.46 per share on January 23, 2018 represented a decline of $11.54 or 76.93% from the Company’s IPO price of $15.00 per share.

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  • Case:
    Obalon Therapeutics, Inc. (OBLN)
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Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 01/24/2018

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