| 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 through September 22, 2021 |
| SECURITY TYPE |
Common Stock |
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 resgistration 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 with leave to amend the Complaint. Lead Plaintiffs appealed that Order to the Ninth Circuit Court of Appeals on November 10, 2023. 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 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.