Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of Eargo, Inc. who purchased shares between February 25, 2021 and September 22, 2021.
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 wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until December 6, 2021 to request that the court appoint them lead plaintiff.