NEW YORK, September 24, 2021--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP is investigating potential claims against Eargo, Inc. ("Eargo" or the "Company") (NASDAQ: EAR). The investigation concerns whether Eargo has violated the federal securities laws and/or engaged in other unlawful business practices.
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 (the ‘DOJ’) related to insurance reimbursement claims the Company has submitted on behalf of its customers covered by federal employee health plans." The Company admitted 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." Eargo also added that it "is withdrawing its financial guidance for the fiscal year ending December 31, 2021." On this news, the Company’s share price declined by $14.81 per share, or approximately 68.3%, from $21.67 per share to close at $6.86 per share on September 23, 2021.
If you purchased or otherwise acquired Eargo securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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