(NASDAQ GS: EAR)
Rigrodsky Law, P.A. is investigating potential claims against the officers and directors of Eargo, Inc. ("Eargo" or the "Company") on behalf of stockholders. A class action complaint has been filed against Eargo. The complaint alleges that the materials filed in connection with the Company's initial public offering (the "Offering Materials") contained untrue statements of material fact, omitted material facts necessary to make the statements contained therein not misleading, and failed to make adequate disclosures required under the rules and regulations governing the preparation of such documents. Specifically, in the Offering Materials, defendants repeatedly pointed to insurance coverage as a key driver of revenues and growth for the Company. In truth, Eargo's insurance customers were not a sustainable driver of the Company's financial results because insurers would not cover claims for Eargo's products at the level the Company represented to investors. In addition, 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 the Company's financial results. As a result, the positive statements made by defendants about the Company's business, operations, and prospects, including its 2021 financial guidance, were materially misleading and/or lacked a reasonable basis. As a result of these and other misrepresentations, shares of Eargo common stock traded at artificially inflated prices.