The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Eargo, Inc. (NASDAQ: EAR) who purchased (a) in or traceable to the Company’s initial public offering of common stock conducted on or around October 15, 2020 (the “Offering”); and/or (b) shares of Eargo common stock between October 15, 2020 and September 22, 2021, inclusive. The action, which was filed in the United States District Court for the Northern District of California, alleges that the Company violated federal securities laws.
In particular, the Eargo lawsuit alleges that (1) Eargo had improperly sought reimbursements from certain third-party payors; (2) the foregoing was reasonably likely to lead to regulatory scrutiny; (3) as a result and because the reimbursements at issue involved the Company’s largest third-party payor, Eargo’s financial results would be adversely impacted; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Shareholders have until December 6, 2021 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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