NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Eargo, Inc. (“Eargo” or the “Company”) (NASDAQ: EAR) on behalf of Eargo stockholders. Our investigation concerns whether Eargo has violated the federal securities laws and/or engaged in other unlawful business practices.
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On or around October 16, 2020, Eargo conducted its initial public offering (“IPO”), offering 7.9 million shares of common stock priced at $18.00 per share. Then, on September 22, 2021, Eargo 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, Eargo announced that it “is withdrawing its financial guidance for the fiscal year ending December 31, 2021.”
On this news, Eargo’s stock price fell $14.81 per share, or 68.34%, to close at $6.86 per share on September 23, 2021.
If you purchased or otherwise acquired Eargo shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.