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NEW ORLEANS, December 04, 2021--(BUSINESS WIRE)--Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until December 6, 2021 to file lead plaintiff applications in securities class action lawsuits against Eargo, Inc. (NasdaqGS: EAR), if they purchased the Company’s shares in the expanded period between October 15, 2020 and September 22, 2021, inclusive (the "Class Period") and/or pursuant to the Company’s October 2020 initial public offering (the "IPO"). These actions are 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 these cases 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 these class actions by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by December 6, 2021.
About the Lawsuits
Eargo and certain of its executives are charged with failing to disclose material information during the Class Period and/or in the Registration Statement and Prospectus issued in conjunction with the initial public offering, 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 first-filed case is Fazio v. Eargo, Inc., et al., 21-cv-7848. A subsequently filed case, IBEW Local 353 Pension Plan v. Eargo, Inc., 21-cv-8747, expanded the class period.
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 to recover investment losses due to corporate fraud and 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.
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Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner