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Case Status:    ONGOING    
On or around 10/09/2018 (Ongoing date of last review)

Filing Date: February 14, 2018

Obalon is purportedly a medical device company that develops and commercializes medical devices to treat obese and overweight people by facilitating weight loss. The Company claims that its initial product offering is the Obalon
balloon system, a U.S. Food and Drug Administration (“FDA”) approved swallowable, gas-filled intragastric balloon designed to provide progressive and sustained weight loss in obese patients.

According to the law firm press release, on January 23, 2018, Obalon issued a press release disclosing 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, on unusually heavy volume. The $3.46 closing price represented a total decline of $11.54, or nearly 77%, from the IPO price of $15.00 per share.

The filed complaint alleges that throughout the Class Period, 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 (“GAAP”); (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 July 24, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. The consolidated cases shall be identified as "In re Obalon Therapeutics, Inc. Securities Litigation." Lead Plaintiff filed a consolidated Complaint on October 5.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: OBLN
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. California
DOCKET #: 18-CV-00352
JUDGE: Hon. William V. Gallo
DATE FILED: 02/14/2018
CLASS PERIOD START: 10/05/2016
CLASS PERIOD END: 01/23/2018
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Prongay & Murray LLP
    1925 Century Park East, Suite 2100 , Glancy Prongay & Murray LLP, CA 90067
    (310) 201-9150 (310) 432-1495 ·
No Document Title Filing Date
COURT: S.D. California
DOCKET #: 18-CV-00352
JUDGE: Hon. William V. Gallo
DATE FILED: 10/05/2018
CLASS PERIOD START: 10/06/2016
CLASS PERIOD END: 05/11/2018
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date
—Related District Court Filings Data is not available