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Scott+Scott, Attorneys at Law, LLP Reminds Investors of Securities Class Action Against Obalon Therapeutics, Inc. (OBLN) and April 16 Lead Plaintiff Deadline NEW YORK, April 12, 2018 /PRNewswire/ -- Scott+Scott, Attorneys at Law, LLP ("Scott+Scott"), a national securities and consumer rights litigation firm, is notifying investors that class action lawsuits have been filed against Obalon Therapeutics, Inc. (NASDAQ: OBLN ) ("Obalon" or the "Company") and other defendants, related to alleged violations of federal securities laws. If you purchased Obalon securities between October 5, 2016 and January 23, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for additional information. Obalon manufactures medical devices, including a medical gastric balloon for weight loss therapy. The lawsuit alleges that the defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, defendants failed to disclose: (1) that the Company recognized revenue in violation of Generally Accepted Accounting principles; (2) that the Company lacked adequate internal controls over accounting and financial reporting; and (3) that, as a result of the foregoing, the Company's financial statements and defendants' statements about Obalon's business, operations, and prospects, were materially false and misleading at all relevant times. On January 23, 2018, Obalon announced that "a purported whistleblower contacted KPMG LLP, the Company's independent auditors, to make certain allegations relating to allegedly improper revenue recognition during the Company's fourth fiscal quarter of 2017." The Company further stated that "Obalon's Audit Committee will oversee an internal investigation of these allegations." On this news, Obalon's stock price fell $1.73 per share, or 33.3%, to close at $3.46 per share on January 23, 2018. The $3.46 closing price represented a total decline of nearly 77%, from the Initial Public Offering price of $15.00 per share. If you purchased Obalon securities between October 5, 2016 and January 23, 2018, dates inclusive, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or at firstname.lastname@example.org . Investors have until April 16, 2018, to move for lead plaintiff.
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