Securities,
Class Action
Feb. 17, 2023
Eargo says securities class action was 'fraud by hindsight'
“Plaintiffs’ allegations rest on the premise that because the DOJ launched an investigation into Eargo’s insurance billing practices, it necessarily follows that nearly every statement that Eargo made about insurance before the investigation was materially false or misleading,” Eargo argued in its motion to dismiss.
Hearing aid manufacturer Eargo Inc. staved off a consolidated securities class action over information it provided leading up to its initial public offering that the plaintiffs said was misleading.
Purchasers of the company’s stock accused Eargo, its executives, directors and IPO underwriters of falsely inflating the company’s revenue and growth opportunities, because Eargo’s business model did not meet federal insurance reimbursement req...
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