Lost money at Eargo, Inc.?

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OAKLAND, Calif .– (COMMERCIAL THREAD) – Shares of Eargo, Inc.’s recent IPO fell an additional 5% on intraday trading on Tuesday, September 28, 2021 after admitting in an SEC filing on Wednesday, September 24 that the company was making the ‘subject to federal criminal investigation. In the record, Eargo also withdrew his financial guidance for the remainder of 2021, causing Eargo’s shares to fall 68% to a record low of $ 6.86 on Thursday, September 25. Gibbs Law Group continues to investigate potential Eargo Securities Class Action on behalf of investors who lost money in Eargo, Inc. (NASDAQ: EAR).

To speak to a lawyer about this class action investigation, Click here or call (888) 410-2925.

On Wednesday, September 22, 2021, hearing aid company Eargo revealed in an SEC filing that it was the target of a criminal investigation by the United States Department of Justice (DOJ). Eargo said the investigation involved “insurance claims” she had submitted on behalf of “clients covered by federal employee health plans.”

Eargo further revealed that the DOJ was now the “primary contact” behind an audit of pending claims by an insurance company, an audit that Eargo first announced in its Q2 2021 press release on August 12, 2021. In that press release, Eargo described the insurance business as the “largest third party payer,” accounting for 80% of Eargo’s gross receivables as of June 30, 2021, and said that at the Following the audit, claims dating back to March 1, 2021 had not yet been paid.

Despite the audit, Eargo continued in its second quarter report to increase its revenue forecast for 2021 from $ 89 million to $ 93 million to between $ 93 million and $ 96 million. But after the disclosure of the DOJ investigation and its relationship to the third-party payer audit, Eargo has now completely withdrawn its 2021 guidelines.

Following the announcement of the criminal investigation, Eargo’s share price fell 68% on September 23, 2021, causing significant harm to investors.

What should Eargo investors do?

If you have invested in Eargo, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you might be able to recoup your losses. Our investigation is to determine whether Eargo violated federal securities laws by providing false or misleading statements to investors.

About Gibbs Law Group

Gibbs Law Group represents investors nationwide in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duties and breaches of power of attorney. The firm has recouped over $ 1 billion for its clients against some of the world’s largest corporations, and our attorneys have received numerous accolades for their work, including “Best Lawyers in America,” “Best Plaintiff’s Lawyers in California “,” California Lawyer Attorney of the Year “,” Class Action Practice Group of the Year “,” Consumer Protection MVP “and” Top Women Lawyers in California “.

This press release may constitute an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.


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