Twersky Law Group Announces a Class Action Against Eargo, Inc. ("Eargo") and Presents Investors with an Opportunity to Recover Losses, File Claims and Preserve Their Rights! If You Lost Money in Eargo Stock, Contact Us by 12/6/2021 - Yahoo Finance
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.
CASE ALLEGATIONS:
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.
source: https://finance.yahoo.com/news/twersky-law-group-announces-class-134500337.html
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