GlobeNewswire Inc | Nov 1, 2021 03:23PM EDT

November 01, 2021

NEW YORK, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Eargo, Inc. (Eargo or the Company) (NASDAQ: EAR). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.

The investigation concerns whether Eargo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

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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. Then, 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. Finally, Eargo 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.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

CONTACT:Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com888-476-6529 ext. 7980