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RADNOR, Pa., Nov. 28, 2021 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed in the United States District of Court for the Northern District of California against Eargo, Inc. (“Eargo”) (NASDAQ: EAR). The action charges Eargo with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Eargo’s materially misleading statements, Eargo investors have suffered significant losses.
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CLICK HERE TO SUBMIT YOUR EARGO LOSSES
LEAD PLAINTIFF DEADLINE: December 6, 2021
CLASS PERIOD: October 15, 2020 through September 22, 2021
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at firstname.lastname@example.org
EARGO’S ALLEGED MISCONDUCT
Eargo, headquartered San Jose, California, is a medical device company that specifically manufactures and sells hearing aids through online platforms. The hearing aids sold by Eargo function to improve hearing loss by allowing natural bass sounds to flow more freely into the ear canal.
On October 16, 2021, Eargo conducted its initial public offering (“IPO”), selling more than 9 million shares of Eargo common stock at $18.00 per share, generating over $160 million in gross proceeds. On August 12, 2021, when reporting its second-quarter 2021 financial results, Eargo revealed that its largest third-party payor, an insurance company, was conducting a claims audit on the company. Then, on September 22, 2021, Eargo reported that the U.S. Department of Justice (“DOJ”) was conducting a criminal investigation into the company regarding Eargo’s insurance reimbursement claims that it submits on behalf of its customers when they purchase the company’s connected hearing aids. Eargo also stated that in light of the investigation by the DOJ, the company would be withdrawing its financial guidance for the fiscal year ending December 31, 2021.
Following this news, Eargo’s stock plunged, and on September 23, 2021, the stock closed at $6.86 per share, falling by as much as 65%.
WHAT CAN I DO?
Eargo investors may, no later than December 6, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Eargo investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dd815f10-3ac6-43d5-9c7b-f2354c11601e