Kaskela Law LLC Announces Investigation of Eargo, Inc. (NASDAQ: EAR) and Encourages Long-Term EAR Shareholders to Contact the Firm
PHILADELPHIA, March 29, 2022 (GLOBE NEWSWIRE) — Investor protection law firm Kaskela Law LLC announces that it is investigating Eargo, Inc. (“Eargo” or the “Company”) (NASDAQ: EAR) on behalf of the Company’s long-term shareholders.
Recently a shareholder class action complaint was filed against Eargo on behalf of investors who purchased shares of the Company’s common stock between February 25, 2021 and September 22, 2021. According to the complaint, during that time period Eargo and certain of its executive officers made a series of false and misleading statements to investors concerning the Company’s business, operations, and prospects.
On August 12, 2021, the Company disclosed that claims submitted to its largest third-party payor had gone unpaid since March 31, 2021, and that those claims represented 80% of Eargo’s gross account receivables as of June 30, 2021. On this news, shares of Eargo’s stock fell $8.00 per share, or 25% in value, to close at $24.70 per share on August 13, 2021.
Then, on September 22, 2021, Eargo disclosed that it was “the target of a criminal investigation by the U.S. Department of Justice (the ‘DOJ’) related to insurance reimbursement claims the Company submitted on behalf of its customers covered by federal employee health plans.” Following this additional news, shares of Eargo’s stock fell an additional $14.81 per share, or 68%, to close at $6.86 on September 22, 2021.
The investigation seeks to determine whether the members of Eargo’s board of directors breached their fiduciary duties to the Company and its stockholders in connection with the above alleged misconduct.
Eargo stockholders who purchased or acquired shares of the Company’s common stock prior to February 25, 2021 are encouraged to contact Kaskela Law LLC (Adrienne Bell, Esq.) at (484) 299 – 0750, or by email ([email protected]) or online at https://kaskelalaw.com/cases/eargo-inc/ , for additional information about this investigation and their legal rights and options.
Kaskela Law LLC represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about the firm please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
CONTACT:
D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
KASKELA LAW LLC
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com
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