OneSpan Inc. Class Action Lawsuit
- Company Name
- OneSpan Inc.
- Stock Symbol
- Class Period
- May 9, 2018 to August 11, 2020
- Northern District of Illinois
The OneSpan Inc. class action lawsuit charges OneSpan and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of OneSpan securities between May 9, 2018 and August 11, 2020, inclusive (the “Class Period”). The OneSpan class action lawsuit was commenced on August 20, 2020 in the Northern District of Illinois and is captioned Almendariz v. OneSpan Inc., No. 20-cv-04906.
OneSpan, together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide.
The complaint alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose, among other things, that OneSpan had inadequate disclosure controls and procedures and internal control over financial reporting and that OneSpan had overstated its revenue relating to certain contracts with customers involving software licenses in its financial statements spread out over the quarters from the first quarter of 2018 to the first quarter of 2020.
On August 4, 2020, OneSpan postponed its second quarter 2020 earnings release and conference call by one week, attributing the delay to prior-period revenue-recognition problems relating to certain software license contracts spread out over the quarters from the first quarter of 2018 to the first quarter of 2020. OneSpan further stated that “[t]he net contract assets that originated from a portion of these contracts in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue.”
Then, on August 11, 2020, OneSpan disclosed that it would not timely file its quarterly report for the quarter ended June 30, 2020, that same-quarter year-over-year revenues had declined, and that it was withdrawing its full year 2020 earnings guidance, which OneSpan had affirmed one quarter earlier. On this news, the price of OneSpan shares fell nearly 40%, damaging investors.
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