Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until December 6, 2021 to file lead plaintiff applications in a securities class action lawsuit against Eargo, Inc. (NasdaqGS: EAR), if they purchased the Company’s securities between February 25, 2021 and September 22, 2021, inclusive (the “Class Period”). This action is pending in the United States District Court for the Northern District of California.
What You May Do
If you purchased securities of Eargo and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (firstname.lastname@example.org), or visit https://www.ksfcounsel.com/cases/nasdaqgs-ear/ to learn more. If you wish to serve as a lead plaintiff in this class action, you must petition the Court by December 6, 2021.
About the Lawsuit
Eargo and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On August 12, 2021, post-market, the Company disclosed that the Company’s largest third-party payer, which accounted for 80% of its accounts receivables and was “basically administrating on behalf of the federal government,” had not paid on submitted claims since March 1, 2021. On this news, the Company’s share price fell $8.00, or over 24%, to close at $24.70 per share on August 13, 2021, on unusually heavy trading volume.
Then, on September 22, 2021, post-market, the Company disclosed that “it is the target of a criminal investigation by the U.S. Department of Justice related to insurance reimbursement claims the Company has submitted on behalf of customers covered by federal employee health plans,” and as a result was withdrawing its financial guidance for the fiscal year ending Dec. 31.
On this news, the Company’s share price plummeted $14.81, or over 68%, to close at $6.86 per share on September 23, 2021, on unusually heavy trading volume.
The case is Fazio v. Eargo, Inc., et al., 21-cv-7848.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, California, Louisiana and New Jersey.
To learn more about KSF, you may visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner