SAN FRANCISCO, Aug. 12, 2020 /PRNewswire/ — Hagens Berman urges OneSpan Inc. (NASDAQ: OSPN) investors to submit their losses now. The firm is conducting an investigation into possible securities law violations.
Relevant Holding Period: Before Aug. 12, 2020
Contact An Attorney Now: (email protected)
OneSpan Inc. (OSPN) Investigation
The investigation centers on whether OneSpan manipulated its financial statements, including overstating revenues.
In past quarters, OneSpan has touted its “record revenues” and nearly 20% year-over-year revenue growth, identifying its software license business as a “key driver” for the success. The company has also assured investors that its internal controls over financial reporting were effective.
But on Aug. 4, 2020, 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. According to OneSpan, “(t)he net contract assets that originated from a portion of these assets in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue.”
Then, on Aug. 11, 2020, OneSpan (1) announced it would not timely file its Q2 2020 financial statements on Form 10Q with the SEC, (2) revealed the revenue recognition problems stretched from Q1 2018 through Q1 2019, (3) reported that same quarter year-over-year revenues had declined, and (4) withdrew its FY 2020 earnings guidance. This news drove the price of OneSpan shares crashing nearly 40% lower the next day.
“We’re focused on investor losses and whether OneSpan engaged in revenue recognition fraud,” 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.
Whistleblowers: Persons with non-public information regarding OneSpan 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 mailto:(email protected).
About Hagens Berman
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP