ClaimsFiler, a FREE shareholder information service, reminds investors investors with losses in excess of $100,000 that they have until December 6, 2021 to file lead plaintiff applications in securities class action lawsuits against Eargo, Inc. (NasdaqGS: EAR), if they purchased the Company’s between October 15, 2020 and September 22, 2021, inclusive (the “Class Period”) and/or pursuant to the Company’s October 2020 initial public offering (the “IPO”). These actions are pending in the United States District Court for the Northern District of California.
Eargo investors should visit us at https://claimsfiler.com/cases/nasdaq-ear/ or call toll-free (844) 367-9658. Lawyers at Kahn Swick & Foti, LLC are available to discuss your legal options.
About the Lawsuits
Eargo and certain of its executives are charged with failing to disclose material information during the Class Period and/or in the Registration Statement and Prospectus issued in conjunction with the initial public offering, violating federal securities laws.
On August 12, 2021, post-market, the Company disclosed that the Company’s largest third-party payer, which accounted for 80% of its accounts receivables and was “basically administrating on behalf of the federal government,” had not paid on submitted claims since March 1, 2021. On this news, the Company’s share price fell $8.00, or over 24%, to close at $24.70 per share on August 13, 2021, on unusually heavy trading volume.
Then, on September 22, 2021, post-market, the Company disclosed that “it is the target of a criminal investigation by the U.S. Department of Justice related to insurance reimbursement claims the Company has submitted on behalf of customers covered by federal employee health plans,” and as a result was withdrawing its financial guidance for the fiscal year ending Dec. 31.
On this news, the Company’s share price plummeted $14.81, or over 68%, to close at $6.86 per share on September 23, 2021, on unusually heavy trading volume.
The first-filed case is Fazio v. Eargo, Inc., et al., 21-cv-7848. A subsequently filed case, IBEW Local 353 Pension Plan v. Eargo, Inc., 21-cv-8747, expanded the class period.
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