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Boston, Massachusetts--(Newsfile Corp. - September 24, 2021) - Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations by Eargo, Inc. ("Eargo" or the "Company") (NASDAQ: EAR), a medical device company focused on hearing aids with headquarters in San Jose, California.
On October 16, 2020, the Company commenced its initial public offering selling approximately 9 million shares of common stock at $18 per share for net proceeds of approximately $148 million.
On September 22, 2021, after the market closed, the Company filed a Form 8-K with the Securities and Exchange Commission ("SEC") disclosing that on September 21, 2021, the Company "was informed 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 further stated in its Form 8-K, "[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."
Based on this information, the Company stated that it was "withdrawing its financial guidance for the fiscal year ending December 31, 2021." On this news, shares were down $14.81 per share (or 68%) to close at $6.86 per share on September 23, 2021.
If you purchased Eargo securities between October 16, 2020 and September 22, 2021, and would like to discuss your legal rights, or if you wish simply to share information about the investigation, please visit: Shareholder Contact | Berman Tabacco.
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
This notice may constitute attorney advertising.
Jay Eng, Esq.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/97573