BENSALEM, Pa., Sept. 30, 2021 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith continues its investigation on behalf of Eargo, Inc. (“Eargo” or the “Company”) (NASDAQ: EAR) investors concerning the Company and its officers’ possible violations of federal securities laws.
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, Eargo withdrew its full year financial guidance.
On this news, the Company’s share price fell $14.81 per share, or 68.34%, to close at $6.86 per share on September 23, 2021, thereby injuring investors.
If you purchased Eargo securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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