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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of April 22, 2021, by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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January 7, 2021 - The court preliminarily approved the settlement.
August 17, 2020 - A stipulation and agreement of settlement was entered by the parties.
September 25, 2019 - The court granted in part and denied in part the defendants' motion to dismiss.
December 4, 2018 - A motion to dismiss the consolidated complaint was filed.
October 5, 2018 - A consolidated complaint was filed.
February 14, 2018 - An investor in shares of Obalon Therapeutics, Inc. (NASDAQ:OBLN) filed a lawsuit in the U.S. District Court for the Southern District of California over alleged violations of Federal Securities Laws by Obalon Therapeutics, Inc. in connection with certain allegedly false and misleading statements made between October 5, 2016 and January 23, 2018.
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. reported 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.
According to the complaint the plaintiff alleges on behalf of purchasers of Obalon Therapeutics, Inc. (NASDAQ:OBLN) common shares between October 5, 2016 and January 23, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 5, 2016 and January 23, 2018, the Defendants failed to disclose that Obalon Therapeutics, Inc. recognized revenue in violation of Generally Accepted Accounting principles (“GAAP”), that the Company lacked adequate internal controls over accounting and financial reporting, and that, as a result of the foregoing, Obalon Therapeutics, Inc.’s financial statements and Defendants’ statements about Obalon’s business, operations, and prospects, were materially false and misleading at all relevant times.