GlobeNewswire Inc | Oct 4, 2021 02:50PM EDT

October 04, 2021

NEW YORK, Oct. 04, 2021 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating claims of violations of federal securities laws on behalf of investors of Eargo, Inc. (Eargo or the Company) (NASDAQ: EAR). If you are a shareholder of Eargo with more than $50,000 in losses, you should contact the Firm.

On or around October 16, 2020, Eargo conducted its initial public offering (IPO), offering 7.9 million shares of common stock priced at $18.00 per share. On September 22, 2021, Eargo disclosed 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 further stated that [a]s previously disclosed, the Company has been the subject of an ongoing claims audit by an insurance company that is the Companys 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.

Eargo also announced that it is withdrawing its financial guidance for the fiscal year ending December 31, 2021.

On this news, Eargos stock price fell $14.81 per share, or 68.34%, to close at $6.86 per share on September 23, 2021.

If you are a shareholder of Eargo and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7256 or via email atinvestigations@lowey.com.

Whistleblowers: Persons with non-public information regarding Eargo should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.

Contact

Lowey Dannenberg P.C.44 South Broadway, Suite 1100White Plains, NY 10601Tel: (914) 733-7256Email:investigations@lowey.com