• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » Obalon slips on Q4, 2017 misses; shareholders sue

Obalon slips on Q4, 2017 misses; shareholders sue

March 6, 2018 By Brad Perriello

Obalon TherapeuticsObalon Therapeutics (NSDQ:OBLN) shares are under pressure today as the market reacts to fourth-quarter and full-year results that failed to meet both its own expectations and the consensus forecast on Wall Street.

Separately, Obalon revealed in a regulatory filing that shareholders are pursing class action lawsuits alleging that the Carlsbad, Calif.-based company and its management misled investors about its accounting practices, citing a whistleblower’s allegations of improper revenue recognition that a company probe later found to be meritless. The allegations forced the company to spike a $35 million offering.

Obalon’s Q4 losses grew 34.9% to -$10.1 million, or -60¢ per share, despite sales growth of 378.2% to $3.7 million for the three months ended Dec. 31, 2017, compared with Q4 2016. Analysts on The Street were looking for losses of -46¢ on sales of $3.9 million.

Full-year losses were up 69% to -$34.8 million, or -$2.08 per share, on sales growth of 192.2% to $9.9 million, compared with 2016, the company said yesterday in its audited financial statement (Obalon put out preliminary numbers in January). The consensus forecast had losses at -$194 per share on sales of $10.1 million.

The news had pushed OBLN shares down -8.0% to $3.69 apiece today as of about 10 a.m. Eastern.

In its annual report, Obalon said investors filed a pair of purported class action suits in the U.S. District Court for Southern California regarding the book-keeping allegations. The first, brought by shareholder Michael Hustig, alleges that the company and its management recognized revenue in violation of generally accepted accounting principles and lacked adequate internal controls over its accounting and financial reporting practices, leading to financial statements and public comments that “were materially false and misleading.” The suit purports to cover owners of Obalon stock who bought between Oct. 5, 2016, and Jan. 23, according to the complaint.

The second suit, brought by investor Harold Cook, makes substantially the same accusations, but also adds claims it alleges are traceable to the company’s initial public offering documents, according to the complaint.

Filed Under: Legal News, MassDevice Earnings Roundup, Wall Street Beat, Weight loss Tagged With: Obalon Therapeutics

More recent news

  • Ambu wins FDA clearance for first single-use cysto-nephroscope
  • Tandem Diabetes Care pairs t:slim X2 pump with Abbott FreeStyle Libre 3 Plus in U.S.
  • Ypsomed, CamDiab to integrate Abbott dual glucose-ketone sensor into automated insulin delivery system
  • Johnson & Johnson MedTech launches new Volt plating systems for radius, humerus
  • PharmaSens, SiBionics collab on all-in-one insulin patch pump

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy