HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Eargo (EAR) Investors With Significant Loss to Contact Firm's Attorneys Now, Firm Investigating Possible Securities Fraud After Company Announces Criminal Investigation
SAN FRANCISCO, Sept. 24, 2021 /PRNewswire/ --Hagens Berman urges Eargo, Inc. (NASDAQ: EAR) investors with significant losses to submit your losses now. The firm is investigating possible securities law violations and Eargo announces it is the target of a criminal investigation.
The investigation is focused on Eargo's claims since its October 15, 2020 initial public offering that it complies with applicable laws governing insurance coverage and reimbursement.
Eargo's claims were brought into serious question beginning on Sept. 22, 2021, when the company announced it is the target of a criminal investigation by the U.S. Department of Justice related to insurance reimbursement claims the company submitted on behalf of customers covered by Federal employee health plans. In light of this information, Eargo is facing a slew of analyst downgrades. Wells Fargo's Lawrence Biegelsen reportedly reduced his price target to $10, noting the uncertainty around the DOJ criminal investigation affects about 55% of Eargo's current revenue. J.P. Morgan analyst Robbie Marcus reportedly reduced the price target to $11.
These events sent the price of Eargo shares crashing on Sept. 23, 2021.
"We're focused on investors' losses and whether Eargo submitted false claims to the government," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Eargo should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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