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SAN FRANCISCO, Oct. 19, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Eargo, Inc. (NASDAQ: EAR) investors with significant losses to submit your losses now. A securities fraud class action has been filed, and the firm is investigating whether the alleged fraud dates back to Eargo’s Oct. 2020 initial public offering.
Investigated Fraudulent Period: Oct. 16, 2020 – Sept. 22, 2021
Alleged Class Period: Feb. 25, 2021 – Sept. 22, 2021
Lead Plaintiff Deadline: Dec. 6, 2021
Contact An Attorney Now: EAR@hbsslaw.com
Eargo, Inc. (EAR) Securities Fraud Class Action:
Eargo, a hearing aid manufacturer, targets consumers with hearing aid insurance, and provides insurance claims processing for these customers. Consequently, a significant portion of Eargo’s accounts receivables is insurance reimbursement claims the Company has submitted to government-sponsored healthcare and private insurance.
The complaint alleges that Defendants misled investors between Feb. 25, 2021 – Sept. 22, 2021, by failing to disclose that (1) Eargo improperly sought reimbursements from certain third-party payors, (2) the foregoing was reasonably likely to lead to regulatory scrutiny, and (3) as a result and because the reimbursements at issue involved the company’s largest third-party payor, Eargo’s financial results would be adversely impacted.
The complaint alleges investors began to learn the truth on Aug. 12, 2021, when in reporting its Q2 2021 financial results, Eargo revealed that its largest third-party payor was conducting a claims audit and had not paid Eargo since March 1, 2021.
Then, on Sept. 22, 2021, Eargo announced it is the target of a criminal investigation by the DOJ related to insurance reimbursement claims the company submitted on behalf of customers covered by Federal employee health plans.
The firm is investigating whether the alleged fraud dates back to Eargo’s Oct. 2020 initial public offering and if the alleged class period should be properly expanded to cover additional investors.
“We’re focused on investors’ losses and determining when Eargo’s alleged fraudulent reimbursement scheme commenced,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Eargo, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Eargo should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EAR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895