LOS ANGELES, CA / ACCESSWIRE / February 8, 2018 / The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Obalon Therapeutics, Inc. ("Obalon" or "the Company") (NASDAQ: OBLN) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. On January 23, 2018, Obalon announced it would cancel its previously announced public offering of Obalon common stock after its independent auditor, KPMG LLP, received a complaint from a "purported whistleblower" alleging "improper revenue recognition during the Company's fourth fiscal quarter of 2017." On this news, shares of Obalon fell $1.73 per share or over 33% from its previous closing price to close at $3.46 per share on January 23, 2018. When the truth was revealed to the investing public, shares dropped causing shareholders harm.
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The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
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SOURCE: The Schall Law Firm