RADNOR, PA / ACCESSWIRE / November 16, 2021 / The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed against Eargo, Inc. ("Eargo") (NASDAQ:EAR). The action charges Eargo with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As a result of Eargo's materially misleading statements, Eargo investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: December 6, 2021
CLASS PERIOD: October 15, 2020 through September 22, 2021
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS: James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at info@ktmc.com
EARGO'S ALLEGED MISCONDUCT
Eargo, headquartered San Jose, California, is a medical device company that specifically manufactures and sells hearing aids through online platforms. The hearing aids sold by Eargo function to improve hearing loss by allowing natural bass sounds to flow more freely into the ear canal.
On October 16, 2021, Eargo conducted its initial public offering ("IPO"), selling more than 9 million shares of Eargo common stock at $18.00 per share, generating over $160 million in gross proceeds. On August 12, 2021, when reporting its second-quarter 2021 financial results, Eargo revealed that its largest third-party payor, an insurance company, was conducting a claims audit on the company. Then, on September 22, 2021, Eargo reported that the U.S. Department of Justice ("DOJ") was conducting a criminal investigation into the company regarding Eargo's insurance reimbursement claims that it submits on behalf of its customers when they purchase the company's connected hearing aids. Eargo also stated that in light of the investigation by the DOJ, the company would be withdrawing its financial guidance for the fiscal year ending December 31, 2021.
Following this news, Eargo's stock plunged, and on September 23, 2021, the stock closed at $6.86 per share, falling by as much as 65%.
WHAT CAN I DO?
Eargo investors may, no later than December 6, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member.Kessler Topaz Meltzer & Check, LLP encourages Eargo investors who have suffered significant losses to contact the firm directly to acquire more information.