Pomerantz LLP announces that a class action lawsuit has been filed
against Obalon Therapeutics, Inc. (“Obalon” or the “Company”)
and certain of its officers. The class action, filed in
United States District Court, for the District Southern District of
California, and Docketed under 18-cv-00407, is on behalf of a class
consisting of investors who purchased or otherwise acquired Obalon
securities: (i) pursuant and/or traceable to Obalon’s false and
misleading Registration Statement and Prospectus, issued in connection
with the Company’s initial public offering on or about October 5, 2016
(the “IPO” or the “Offering”); and/or (ii) on the open market between
October 5, 2016 and January 23, 2018, both dates inclusive (the “Class
Period”), seeking to recover damages caused by Defendants’ violations of
the Securities Act of 1933 (the “Securities Act”) and the Securities
Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Obalon securities between October
5, 2016, and January 23, 2018, both dates inclusive, you have until
April 16, 2018, to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org
or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who
inquire by e-mail are encouraged to include their mailing address,
telephone number, and the number of shares purchased.
here to join this class action]
Obalon Therapeutics, Inc. is a medical device company that focuses on
developing and commercializing medical gastric balloons for weight loss
therapy. The Company claims that its initial product offering is the
Obalon balloon system, a U.S. Food and Drug Administration (“FDA”)
approved swallowable, gas-filled intra-gastric balloon designed to
provide progressive and sustained weight loss in obese patients.
The Complaint alleges that throughout the Class Period, Defendants made
materially false and misleading statements regarding the Company’s
business, operational and compliance policies. Specifically, Defendants
made false and/or misleading statements and/or failed 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.
On January 23, 2018, Obalon issued a press release entitled “Obalon
Announces Termination of Public Offering of Common Stock,” revealing
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.” The press release further stated that “Obalon’s Audit
Committee will oversee an internal investigation of these allegations.”
On this news, Obalon’s share price fell $1.73, or 33.33%, to close at
$3.46 on January 23, 2018, on unusually heavy volume. The $3.46 closing
price represented a total decline of $11.54, or nearly 77%, from the IPO
price of $15.00 per share.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and
Paris, is acknowledged as one of the premier firms in the areas of
corporate, securities, and antitrust class litigation. Founded by the
late Abraham L. Pomerantz, known as the dean of the class action bar,
the Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in the
tradition he established, fighting for the rights of the victims of
securities fraud, breaches of fiduciary duty, and corporate misconduct.
The Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180407005007/en/
SOURCE: Pomerantz LLP
Robert S. Willoughby, 888-476-6529 Ext. 9980
Copyright Business Wire 2018