Benzinga | Sep 22, 2021 04:18PM EDT

Eargo 8-K Shows Co. Was Target Of Dept. Of Justice Criminal Probe Related To Insurance Reimbursement Claims Co. Submitted On Behalf Of Its Customers Covered By Federal Employee Health Plans

On September 21, 2021, Eargo, Inc. (the "Company") was informed 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 its customers covered by federal employee health plans. The Company is cooperating with the investigation. In addition, the Company intends to work with the government with the objective of validating the process to support any future claims that the Company may submit for reimbursement.

As previously disclosed, the Company has been the subject of an ongoing claims audit by an insurance company that is the Company's largest third-party payor. The Company has been informed by the insurance company that the DOJ is now the principal contact related to the subject matter of the audit.

In light of this information, the Company is withdrawing its financial guidance for the fiscal year ending December 31, 2021.