New York, New York–(Newsfile Corp. – October 11, 2021) – Twersky Law Group, a premier shareholder protection and loss recovery law firm, is investigating claims on behalf of all investors who purchased Stock in Eargo, Inc. (NASDAQ: EAR) (“Eargo”) during the class period of February 25, 2021 and September 22, 2021. Eargo is a medical device company that focuses on manufacturing hearing aids and other devices for hearing loss. For more information about this case, your rights and the opportunities available to you to preserve those rights and obtain a recovery visit our website or call Atara Twersky, Esq. directly at 212 365-0588.
On September 22, 2021 after the stock market closed, Eargo revealed 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.” Further, the Department of Justice is the “principal contact related to the subject matter of the [ongoing] audit” of Eargo by an insurance company that is Eargo’s largest third-party payor. As a result of this, Eargo withdrew its full year financial guidance. When this information was released, Eargo’s share price fell $14.81 per share, or 68.34%, to close at $6.86 per share on September 23, 2021. This drop in value has hurt investors in the stock.
The Complaint against Eargo alleges that during the Class Period Eargo made materially false and/or misleading statements and failed to disclose material adverse facts about its business, operations, and prospects. Specifically, the complaint alleges that defendant Eargo failed to disclose the following to investors: (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 of the foregoing 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 the statements about Eargo’s business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
CLASS PERIOD ELIGIBILITY: All investors who purchased stock in Eargo between February 25, 2021 and September 22, 2021, both dates inclusive, are eligible to participate in this lawsuit.
THERE ARE WAYS FOR YOU TO PURSUE A RECOVERY OF YOUR LOSSES AND PRESERVE YOUR RIGHTS: LEADING THE CLASS-THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 (PSLRA) allows any investor who purchased stock in Eargo during the designated Class Period to seek appiontment as the lead plaintiff in this Eargo class action lawsuit and to file claims in the pending lawsuit. A lead plaintiff will generally be an individual or entity that has experienced the greatest loss and will therefore have the greatest financial interest in the relief that is being sought by the class. This plaintiff must also be an adequate representative that will act on behalf of all other class members in the lawsuit. If you wish to serve as the lead plaintiff in this lawsuit against Eargo, you must move the Court on or before December 6, 2021.
The Twersky Law Group and Atara Twersky, Esq. possess extensive experience in prosecuting investor class actions and securities fraud cases.
Whistleblowers: Anyone with information not available publicly regarding Eargo, please contact us as you may be able to participate in the SEC Whistleblower program for which you may be entitled to receive a whistleblower reward. To read more about your potential rights and rewards as an (anonymous) Whistleblower you can read Atara Twersky’s article.
ABOUT TWERSKY LAW GROUP: Atara Twersky, Esq., Principal at Twersky Law Group has been successfully and thoughtfully representing clients across the globe in securities, antitrust and shareholder litigation. Atara treats each client and each case with attention and care to every detail. Atara is the host of the popular podcast, Pensions and Investments Podcast, where she provides her listeners and clients with timely, practice-leading and relevant information on matters affecting their investment portfolios and methods for increasing shareholder recoveries and value. For more information concerning this case or the Twersky Law Group, visit our website or contact Atara Twersky’s by phone at (212) 365-0588.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99198