PHILADELPHIA, Sept. 14, 2020 (GLOBE NEWSWIRE) -- Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of OneSpan, Inc. (“OneSpan” or the “Company”) (NASDAQ: OSPN) to determine whether the Company engaged in securities fraud or other unlawful business practices.
Investors who purchased, or otherwise acquired, OneSpan’s common stock between May 9, 2018 and August 11, 2020, both dates inclusive (the “Class Period”), and suffered losses greater than $50,000 are encouraged to complete Kehoe Law Firm’s Securities Class Action Questionnaire or contact Kevin Cauley, Director, Business Development, (215) 792-6676, Ext. 802, kcauley@kehoelawfirm.com, securities@kehoelawfirm.com, to discuss the securities investigation or potential legal claims.
According to a class action complaint filed on August 20, 2020 in United States District Court, during the Class Period, the OneSpan defendants, allegedly, made false and/or misleading statements and/or failed to disclose that (1) OneSpan had inadequate disclosure controls and procedures and internal control over financial reporting; (2) as a result, OneSpan overstated its revenue relating to certain contracts with customers involving software licenses in its financial statements spread out over the quarters from the first quarter of 2018 to the first quarter of 2020; (3) as a result, it was foreseeably likely that the Company would eventually have to delay one or more scheduled earnings releases, conference calls, and/or financial filings with the SEC; (4) OneSpan downplayed the negative impacts of errors in its financial statements; (5) all the foregoing, once revealed, was foreseeably likely to have a material negative impact on the Company's financial results and reputation; and (6) as a result, the Company's public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On August 11, 2020, OneSpan filed a “Notification of Late Filing” with the SEC, which, among other things, stated that OneSpan “ . . . has determined that it is unable to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 . . . by August 10, 2020, . . . because it requires additional time to complete its financial statements. As previously announced, the Company identified immaterial errors related to certain contracts with customers involving term-based software licenses. The net contract assets that originated from a portion of these contracts in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue.” [Emphasis added.]
OneSpan reported that “[t]he cumulative overstatements of revenue total $2.2 million over the period from the first quarter in the year ended December 31, 2018 to the quarter ended March 31, 2020 . . ..”
Additionally, the Company announced that “[r]evenue for the second quarter of 2020 was $55.0 million, a decrease of 2% from $56.2 million for the second quarter of 2019.”
On this news, OneSpan’s stock price dropped approximately 40% on August 12, 2020, thereby injuring investors.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.
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