October 21, 2021

RM LAW Announces Class Action Lawsuit Against Eargo, Inc.

BERWYN, Pa., Oct. 12, 2021 /PRNewswire/ — RM LAW, P.C. announces that a class action lawsuit has been filed on…

BERWYN, Pa., Oct. 12, 2021 /PRNewswire/ — RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Eargo, Inc. (“Eargo” or the “Company”) (NASDAQ: EAR) securities during the period from February 25, 2021 through September 22, 2021, inclusive (the “Class Period”).

Eargo shareholders may, no later than December 6, 2021, move the Court for appointment as a lead plaintiff of the Class.  If you purchased shares of Eargo and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.

On August 12, 2021, after the market closed, 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 share price fell $8.00, or over 24%, to close at $24.70 per share on August 13, 2021, on unusually heavy trading volume.

On September 22, 2021, after the market closed, Eargo revealed that “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 of the foregoing, Eargo withdrew its full year financial guidance.

On this news, the Company’s share price fell $14.81, or over 68%, to close at $6.86 per share on September 23, 2021, on unusually heavy trading volume.

If you are a member of the class, you may, no later than December 6, 2021, request that the Court appoint you as lead plaintiff of the class.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Under certain circumstances, one or more class members may together serve as “lead plaintiff.”  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.

For more information regarding this, please contact RM LAW, P.C.  (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at rm@maniskas.com or click here.   For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website by clicking here

 RM LAW, P.C. is a national shareholder litigation firm.  RM LAW, P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.

CONTACT:             

RM LAW, P.C.

Richard A. Maniskas, Esquire

1055 Westlakes Dr., Ste. 300

Berwyn, PA 19312

484-324-6800

844-291-9299

rm@maniskas.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/rm-law-announces-class-action-lawsuit-against-eargo-inc-301398663.html

SOURCE RM LAW, P.C.

Leave a Reply