OneSpan Inc. (OSPN) Shocks Investors with Reporting Errors
OneSpan Inc. made false and misleading statements regarding the Company’s internal policies and downplayed the likely negative impact on its profits. On August 4, 2020, OneSpan postponed its second quarter 2020 earnings release due to revenue recognition problems spanning from the first quarter of 2018 through the first quarter of 2020, “which caused overstatements of revenue.” After market close on August 11, 2020, the Company announced that it would not be able to timely submit its SEC report for the quarter ending on June 30, 2020, that same quarter year-over-year revenues had declined, and withdrew its full year 2020 earnings guidance, which it had just confirmed one quarter earlier. On this news, the Company stock price fell almost 40% to close at $18.84 per share on August 12, 2020.
