RADNOR, Pa., Nov. 5, 2021 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP is currently investigating potential violations of the federal securities laws on behalf of investors of Eargo, Inc. (NASDAQ: EAR) («Eargo»).
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 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») would be 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%.
If you are an Eargo investor and would like to learn more about our investigation, please CLICK HERE to fill out our online form or contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; E-mail at email@example.com.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLPis a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). 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
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