| COMPANY |
Eargo, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
21-cv-7848 |
| JUDGE |
The Honorable Charles R. Breyer |
| CLASS PERIOD |
October 15, 2020 and September 22, 2021 |
| SECURITY TYPE |
Common Stock |
Case Background:
A class action lawsuit has been filed on behalf of those who purchased or acquired Eargo, Inc. (“Eargo”) (NASDAQ: EAR): (a) shares in or traceable to Eargo’s initial public offering of common stock conducted on or around October 15, 2020 (the “Offering”); and/or (b) common stock between October 15, 2020 and September 22, 2021, inclusive (the “Class Period”).
The complaint alleges that in the Offering Documents, and throughout the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that: (1) Eargo’s insurance customers were not a sustainable driver of Eargo’s financial results because insurers would not cover claims for Eargo’s products at the level Eargo represented to investors; (2) a substantial portion of insurance claims that Eargo submitted to its largest third-party payor were improper and were reasonably likely to lead to regulatory scrutiny and negatively impact Eargo’s financial results; and (3) as a result, the positive statements made by the defendants about Eargo’s business, operations, and prospects, including its 2021 financial guidance, were materially misleading and/or lacked a reasonable basis.
Current Status of Case:
On August 31, 2023, the Court granted Defendants’ Motion to Dismiss with leave to amend the Complaint. Lead Plaintiffs filed a Notice on October 2, 2023, advising the Court that they would not amend the Complaint. On October 12, 2023, the Court entered Judgment in favor of the Defendants. Lead Plaintiffs appealed that order to the Ninth Circuit Court of Appeals on November 10, 2023. This action is on appeal and is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.