Eargo, Inc. Securities Fraud Class Action

Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Eargo, Inc. (“Eargo”) (NASDAQ: EAR) common stock (1) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Offering Documents”) issued in connection with Eargo’s initial public offering on or around October 15, 2020 (the “Offering”); and/or (2) 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, 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 Defendants about Eargo’s business, operations, and prospects, including its 2021 financial guidance, were materially misleading and/or lacked a reasonable basis at all relevant times.

Current Status of Case:
On August 31, 2023, the Court granted Defendants’ Motion to Dismiss. On November 10, 2023, the Lead Plaintiffs appealed that Order to the Ninth Circuit Court of Appeals, and on January 10, 2025, the Ninth Circuit affirmed the District Court’s decision. This action has concluded.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. 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.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.