Eargo (EAR) was informed that it is the target of a criminal investigation by DOJ

Eargo (NASDAQ: EAR) disclosed:

On September 21, 2021, Eargo, Inc. (the “Company”) was informed that it is the target of a criminal investigation by the U.S. Department of Justice (the “DOJ”) related to insurance reimbursement claims the Company has submitted on behalf of its customers covered by federal employee health plans. The Company is cooperating with the investigation. In addition, the Company 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.

As previously disclosed, the Company has been the subject of an ongoing claims audit by an insurance company that is the Company’s largest third-party payor. The Company has been informed by the insurance company that the DOJ is now the principal contact related to the subject matter of the audit.

In light of this information, the Company is withdrawing its financial guidance for the fiscal year ending December 31, 2021.

You May Also Be Interested In

• Corebridge and Equitable stockholders approve merger
• TOP Financial Group sets 1-for-5 share consolidation for August 3
• Oracle and Google Cloud expand partnership to bring Gemini AI to enterprise apps