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Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until December 6, 2021 to file lead plaintiff applications in a securities class action lawsuit against Eargo, Inc. (NasdaqGS: EAR).
Eargo and certain of its executives are charged with failing to disclose material information during the Class Period, 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.
If you purchased securities of Eargo and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (email@example.com), or fill out the form on this page.
The case is Fazio v. Eargo, Inc., et al., 21-cv-7848.
Click here to read the first filed complaint.