NEW YORK, NY / ACCESSWIRE / October 23, 2021 / Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of Eargo, Inc. ("Eargo" or the "Company") (NASDAQ:EAR) from February 25, 2021 through September 22, 2021 (the "Class Period"). The lawsuit filed in the United States District Court for the Northern District of California alleges violations of the Securities Act of 1934.
If you purchased Eargo securities, and/or would like to discuss your legal rights and options please visit Eargo, Inc. Shareholder Class Action Lawsuit or contact Rujul Patel toll free at (877) 779-1414 or rpatel@bernlieb.com
According to the Complaint, the Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Eargo had improperly sought reimbursements from certain third-party payors; (2) that the foregoing was reasonably likely to lead to regulatory scrutiny; (3) that because the reimbursements at issue involved the Company's largest third-party payor, Eargo's financial statements would be adversely impact; and (4) as a result, Defendants' statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
On August 12, 2021, while reporting its Q2 2021 financial results, Eargo revealed that its largest third-party payor was conducting a claims audit and had not paid the Company since March 1, 2021.
On this news, the price of Eargo shares fell $8.00 per share to close at $24.70 per share on August 13, 2021, thereby injuring investors.
On September 22, 2021, Eargo announced it was the target of a criminal investigation by the U.S. Department of Justice related to insurance reimbursement claims the Company submitted on behalf of customers who were covered by federal employee health plans.
On this news, the price of Eargo shares fell $14.00 per share to close at $6.86 per share on September 23, 2021, thereby injuring investors.
If you wish to serve as lead plaintiff, you must move the Court no later than December 6, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Eargo securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/eargoinc-ear-shareholder-class-action-lawsuit-fraud-stock-444/ or contact Rujul Patel toll free at (877) 779-1414 or rpatel@bernlieb.com
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2021 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Rujul Patel
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
rpatel@bernlieb.com
SOURCE: Bernstein Liebhard LLP
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