PHILADELPHIA, PA / ACCESSWIRE / September 23, 2021 / Barrack, Rodos & Bacine is investigating potential violations of federal securities laws by Eargo, Inc. (NASDAQ:EAR) and its directors and officers.
On September 22, 2021, after trading closed, Eargo disclosed that it is the target of an investigation by the United States Department of Justice relating to reimbursement claims submitted by the company for customers covered by federal employee health care plans. On September 22, Eargo also announced that it was withdrawing its financial guidance for the fiscal year ending December 22, 2021. These disclosures caused the trading price of Eargo common stock to drop dramatically, from a close at $21.67 on September 22, 2021, to $6.88 per share in intraday trading on September 23.
The September 22, 2021 announcement follows an August 12, 2021 disclosure by Eargo that its largest third-party payor was undertaking an audit of Eargo's reimbursement requests and had ceased processing Eargo's reimbursement requests as of March 1, 2021. Following the August 12 disclosure, the trading price of Eargo fell from a close of $32.70 on August 12 to close at $24.70 on August 13.
Eargo went public in October 2020, in an initial public offering of 6.7 million shares priced at $16 per share. Purchasers in that offering, as well as subsequent open market purchasers, have suffered substantial losses on their investments in Eargo.
Eargo investors who have sustained losses are encouraged to contact Samuel Ward of Barrack Rodos & Bacine, at the following toll-free number: 877-386-3304, or via e-mail to sward@barrack.com.
Philadelphia-based Barrack Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud, and has achieved some of the largest recoveries in the history of such litigation.
SOURCE: Barrack, Rodos & Bacine
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