Securities class action litigation has been filed on behalf of investors in the securities of Eargo, Inc. (“Eargo”) (NASDAQ: EAR). If you purchased or otherwise acquired Eargo securities between February 25, 2021 and September 22, 2021, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than December 6, 2021.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Eargo investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below, text or email firstname.lastname@example.org, or call Lieff Cabraser partner Sharon M. Lee toll-free at 1-800-541-7358.
Background on the Eargo Securities Class Litigation
Eargo, headquartered in San Jose, California, is a manufacturer of rechargeable hearing aids. A major portion of the Company’s revenues depends on reimbursements from third-party payor insurance companies.
The action alleges that, throughout the Class Period, Eargo failed to disclose to investors: (1) that the Company had improperly billed certain third-party payors, including its largest such payor; (2) that such actions were likely to lead to regulatory scrutiny; and (3) that, as a results of the foregoing, Eargo’s positive statements about its business and prospects were false and misleading and lacked any reasonable basis in fact.
On August 12, 2021, the Company disclosed that claims submitted to its largest third-party payor had gone unpaid since March 31, 2021, and that those claims represented 80% of Eargo’s gross account receivables as of June 30, 2021. On this news, the price of Eargo common stock fell $8.00 per share, or 24.46%, from its closing price of $32.70 on August 12, 2021, to close at $24.70 per share on August 13, 2021, on elevated trading volume.
On September 22, 2021, after market close, the Company reported that it was “the target of a criminal investigation by the U.S. Department of Justice (the ‘DOJ’) related to insurance reimbursement claims the Company submitted on behalf of its customers covered by federal employee health plans.” As a consequence, Eargo withdrew its financial guidance for fiscal 2021. On this news, the price of Eargo common stock fell $14.81 per share, or 68.34%, from its closing price of $21.67 on September 21, 2021, to close at $6.86 on September 22, 2021, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States and has assisted clients in recovering over $124 billion in verdicts and settlements. Benchmark Litigation named Lieff Cabraser its “2020 California Plaintiff Firm of the Year,” and in early 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Lieff Cabraser is committed to access to justice for all.