A lawsuit was filed on behalf of investors in Eargo, Inc. (NASDAQ:EAR) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 10/18/2021 -- An investor, who purchased shares of Eargo, Inc. (NASDAQ: EAR), filed a lawsuit over alleged violations of Federal Securities Laws by Eargo, Inc..
Investors who purchased shares of Eargo, Inc. (NASDAQ: EAR) have certain options and for certain investors are short and strict deadlines running. Deadline: December 6, 2021. NASDAQ: EAR investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
San Jose, CA based Eargo, Inc., a medical device company, develops and sells hearing aids to assist people with hearing loss in the United States. On September 22, 2021, after market hours, Eargo, Inc. (NASDAQ: EAR) disclosed that "it is the target of a criminal investigation by the U.S. Department of Justice (the 'DOJ') related to insurance reimbursement claims the Company has submitted on behalf of its customers covered by federal employee health plans." The Company further stated that "[a]s previously disclosed, the Company has been the subject of an ongoing claims audit by an insurance company that is the Company's largest third-party payor. The Company has been informed by the insurance company that the DOJ is now the principal contact related to the subject matter of the audit." Finally, the Company announced that it "is withdrawing its financial guidance for the fiscal year ending December 31, 2021." Shares of Eargo, Inc. (NASDAQ: EAR) declined from $22.28 per share on September 22, 2021, to $6.33 per share on September 23, 2021.
The plaintiff alleges on behalf of purchasers of Eargo, Inc. (NASDAQ: EAR) common shares between February 25, 2021 and September 22, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 25, 2021 and September 22, 2021, the Defendants failed to disclose to investors that Eargo had improperly sought reimbursements from certain third-party payors, that the foregoing was reasonably likely to lead to regulatory scrutiny, that, as a result and because the reimbursements at issue involved the Company's largest third-party payor, Eargo's financial results would be adversely impacted, and that as a result, Defendants' statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
Those who purchased shares of Eargo, Inc. (NASDAQ: EAR) have certain options and should contact the Shareholders Foundation.
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