SAN FRANCISCO, CA / ACCESSWIRE / October 6, 2020 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases, including upcoming application deadlines, can be found at the links provided.
OSPN Investors Click Here.
STAA Investors Click Here.
OneSpan Inc. (NASDAQ:OSPN) Securities Class Action:
Class Period: May 9, 2018 - Aug. 11, 2020
Lead Plaintiff Deadline: Oct. 19, 2020
Visit: www.hbsslaw.com/investor-fraud/OSPN
Contact An Attorney Now: [email protected]
844-916-0895
The Complaint alleges that throughout the Class Period, Defendants misrepresented and concealed that: (i) OneSpan had inadequate disclosure controls and procedures over financial reporting; (ii) as a result, OneSpan overstated its revenue relating to certain contracts with customers involving software licenses in its financial statements for Q1 2018 - Q1 2020; and (iii) OneSpan downplayed the negative impacts of errors in its financial statements.
The market allegedly began to learn the truth on Aug. 4, 2020, when OneSpan postponed its Q2 2020 earnings release and conference call by 1 week, blaming the delay on prior period revenue recognition problems relating to certain software license contracts.
Then, according to the complaint, on Aug. 11, 2020, OneSpan (1) announced it would not timely file its Q2 2020 financial statements on Form 10-Q with the SEC, (2) revealed the revenue recognition problems stretched from Q1 2018 - Q1 2019, (3) reported that same quarter year-over-year revenues had declined, and (4) withdrew its FY 2020 earnings guidance.
On this news, OneSpan's common share price fell $12.36 per share, or nearly 40%.
On Aug. 14, 2020, the company issued a quarterly report revealing that it (1) overstated its current contract assets for the fiscal year-ended Dec. 31, 2019 by about 34%, and (2) understated net losses for the three and six months ended June 30, 2019.
Significantly, prior to the alleged disclosures that caused OSPN shares to drop, T. Kendall Hunt, OneSpan's founder, former CEO and former Executive Chairman sold appx. $56 million of his own OneSpan shares at artificially inflated prices. On Sept. 14, 2020, OneSpan announced that (i) Hunt had tendered his resignation; and (ii) that the Company had changed its stock trading policies to prohibit Directors and immediate family members from selling their shares while serving on the Board.
"We're focused on investors' losses and proving OneSpan intentionally cooked its books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a OneSpan investor, click here to discuss your legal rights with Hagens Berman.
STAAR Surgical Company (NASDAQ:STAA) Securities Class Action:
Class Period: Feb. 26, 2020 - Aug. 10, 2020
Lead Plaintiff Deadline: Oct. 19, 2020
Visit: www.hbsslaw.com/investor-fraud/STAA
Contact An Attorney Now: [email protected]
844-916-0895
According to the complaint, STAAR and senior management repeatedly overstated and/or mischaracterized (1) the company's sales and growth in China, (2) its marketing spend, and (3) its research and development expenditures.
Investors began to learn the truth, according to the complaint, after the markets closed on Aug. 5, 2020, when STAAR reported disappointing Q2 2020 sales and a net loss versus net income for the prior year second quarter. In addition, the company revealed its massive- and growing- exposure to a single distributor in China who accounted for 53% of Q2 2020 net sales versus 49% for the year-earlier quarter, and who accounted for 57% of trade receivables versus 43% for Q1 2020.
Then, on Aug. 11, 2020, research firm J Capital published a scathing report calling STAAR's China success story into serious question. More specifically, J Capital accused the company of overstating its sales in China by at least one-third (or $21.6 mln), "meaning all of the company's $14 mln in 2019 profit is fake." The report - based on over 75 interviews with former employees, site visits to China and Switzerland, and extensive review of public documents - concludes STAAR reports fake sales revenues by overstating sales and then marking up actual marketing costs to hide "phantom" revenue. J Capital also found STAAR's largest China client bought only about half the lenses STAAR reported.
These events caused the price of STAAR shares to sharply decline.
"We're focused on investors' losses and proving STAAR cooked its books by inflating its China sales," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a STAAR investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding OneSpan and/or STARR should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected] and/or [email protected].
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
Reed Kathrein
844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP