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LOS ANGELES, Oct. 15, 2021 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Eargo, Inc. ("Eargo" or "the Company") (NASDAQ : EAR) investors that acquired securities between February 25, 2021 and September 22, 2021.
According to the complaint, on August 12, 2021, Eargo revealed that claims submitted to the Company's largest third-party payor, which accounted for 80% of Eargo's accounts receivable, had not been paid since March 1, 2021. On this news, the Company's stock fell $8.00, or over 24%, to close at $24.70 per share on August 13, 2021. Then, on September 22, 2021, Eargo revealed "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 customers covered by federal employee health plans." Moreover, the DOJ is the "principal contact related to the subject matter of the [ongoing] audit" of Eargo by an insurance company that is the Company's largest third-party payor. As a result, Eargo withdrew its full year guidance. On this news, Eargo's shares fell $14.81, or over 68%, to close at $6.86 per share on September 23, 2021.
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The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar