An investigation on behalf of investors of Obalon Therapeutics Inc (NASDAQ:OBLN) shares over potential securities laws violations by Obalon Therapeutics and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Obalon Therapeutics Inc (NASDAQ:OBLN) concerning whether a series of statements by Obalon Therapeutics regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Carlsbad, CA based Obalon Therapeutics, Inc. is a United States-based commercial-stage medical device company focused on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. Obalon Therapeutics Inc repoted that its annual Total Revenue declined from $4.04 million in 2015 to $3.39 million in 2016 and that its Net Loss increased from $15.56 million in 2015 to $20.47 million in 2016.

On January 23, 2018, Obalon Therapeutics Inc announced that it was canceling its previously announced public offering after its auditor, KPMG LLP, received a complaint from a purported whistleblower alleging improper revenue recognition during Q4 2017.

Shares of Obalon Therapeutics Inc (NASDAQ:OBLN) declined to as low as $3.52 per share on January 24, 2018.