EAR: Berman Tabacco Alerts Investors with Losses in Excess of $100,000 of Deadline for Seeking Appointment as Lead Plaintiff in Eargo, Inc. Class Action
Boston, Massachusetts--(Newsfile Corp. - October 21, 2021) - Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations by Eargo, Inc. ("Eargo" or the "Company") (NASDAQ: EAR), a medical device company focused on hearing aids with headquarters in San Jose, California. On or about October 16, 2020, the Company commenced its initial public offering selling approximately 9 million shares of common stock at $18 per share for net proceeds of approximately $148 million.
About the Securities Class Action Filed
On October 6, 2021, a securities class action complaint was filed in the Northern District of California "on behalf of persons and entities that purchased or otherwise acquired Eargo securities between February 25, 2021 and September 22, 2021, inclusive" (the "Class Period"). The deadline to apply to serve as Lead Plaintiff is December 6, 2021.
On August 12, 2021, after the market closed, "Eargo revealed that claims submitted to the Company's largest third-party payor, which accounted for 80% of Eargo's accounts receivable, had not been paid since March 1, 2021."
Then, on September 22, 2021, after the market closed, "Eargo revealed 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 customers covered by federal employee health plans.'" Further, "the DOJ is the 'principal contact related to the subject matter of the [ongoing] audit' of Eargo by an insurance company that is the Company's largest third-party payor."
The class action complaint alleges that "Defendants failed to disclose to investors: (1) that Eargo had improperly sought reimbursements from certain third-party payors; (2) that the foregoing was reasonably likely to lead to regulatory scrutiny; (3) that, as a result and because the reimbursements at issue involved the Company's largest third-party payor, Eargo's financial results would be adversely impacted; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis."
How to Seek Appointment As Lead Plaintiff
If you wish to serve as Lead Plaintiff for the Class, you must file a motion to serve as Lead Plaintiff with the Court no later than December 6, 2021. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class. An investor's ability to share in any potential future recovery is not dependent upon serving as Lead Plaintiff.
A Lead Plaintiff is appointed by the court to represent the members of the putative class in the lawsuit. Typically, the Lead Plaintiff is the applicant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.
If you sustained losses in excess of $100,000 from your transactions in Eargo securities during the Class Period and are interested in learning more about serving as Lead Plaintiff, please provide your information here: Shareholder Contact | Berman Tabacco.
Berman Tabacco typically represents individuals and entities in class actions on a contingency fee basis, meaning we advance all attorneys' fees and expenses in the litigation. If the case is successful, the firm will ask the court to award the firm attorneys' fees and the reimbursement of expenses from any settlement fund. If we are not successful, you will not be responsible for the reimbursement of attorneys' fees or expenses.
About Berman Tabacco
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
This notice may constitute attorney advertising.
Jay Eng, Esq.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/100513