Eargo Informed of DOJ Criminal Investigation, Shares Lower
September 22 2021 - 7:19PM
Dow Jones News
By Stephen Nakrosis
Shares of hearing aid maker Eargo Inc. are lower in Wednesday's
late-trading session, after the company said it "was informed that
it is the target of a criminal investigation by the U.S. Department
of Justice related to insurance-reimbursement claims the company
has submitted on behalf of its customers covered by federal
employee health plans."
Eargo said it is cooperating with the investigation and "intends
to work with the government with the objective of validating the
process to support any future claims that the company may submit
for reimbursement."
At 6:42 p.m. ET, the company's shares were trading 51.08% lower
at $10.60 each. Volume at the time topped 1.1 million shares.
The company's stock finished the day's regular-trading session
with a 1.77% loss, closing at $21.67.
The company's stock hit a 52-week low of $19.25 a share on Sept.
13.
Eargo also said it was withdrawing its financial guidance for
the fiscal year ending Dec. 31, 2021.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
September 22, 2021 19:04 ET (23:04 GMT)
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