Scott+Scott Attorneys at Law LLP Announces Securities Class Action Against Eargo, Inc. (EAR) and December 6 Deadline

NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Eargo, Inc. (“Eargo” or the “Company”) (NASDAQ: EAR) and other defendants, alleging violations of federal securities laws. If you purchased Eargo stock or securities between February 25, 2021 and September 22, 2021, and have suffered a loss, realized or unrealized, you are encouraged to contact Scott+Scott attorney, Jonathan Zimmerman, at [phone], or at [e-mail] for more information.

Eargo is a medical device company focused on hearing loss.

On September 22, 2021, after the close of trading, Eargo disclosed that it is the target of a criminal investigation by the U.S. Department of Justice (DOJ) related to insurance reimbursement claims that the Company has submitted on behalf of its customers covered by federal employee health plans. Eargo also announced it is withdrawing its financial guidance for the fiscal year ending December 31, 2021.

On this news, the price of Eargo shares dropped more than 68% on September 23, 2021, to close at a price of $6.86, down from its previous close price of $21.67.

The lawsuit alleges that the Company and other defendants made materially false and/or misleading statements to investors; specifically, they failed to disclose: (1) That Eargo had improperly sought reimbursements from certain third-party payors; (2) that the foregoing was reasonably likely to lead to regulatory scrutiny; (3) 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, (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

What You Can Do

If you purchased Eargo stock or securities between February 25, 2021 and September 22, 2021, and you wish to discuss this lawsuit, please contact attorney Rhiana Swartz at [phone], or at [e-mail]. The deadline for lead plaintiff motions is December 6, 2021.

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, Virginia, California, and Ohio.

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