Eargo Inc. (NASDAQ:EAR) stock has plunged to an all-time low since the Company started trading last October.
The company was informed that it is the target of a criminal investigation by the U.S. Department of Justice.
The investigation is related to insurance reimbursement claims submitted by the company on behalf of its customers covered by federal employee health plans. Eargo says that it is cooperating with the investigation.
Investors who have lost money in their Eargo investment should contact the firm to learn more about how they might recover those losses. More information is being provided on the company’s website.
In addition, the company intends to work with the government to validate the process to support any future claims that the company may submit for reimbursement.
Hence, Eargo is withdrawing its financial guidance for the fiscal year ending December 31, 2021.
Wells Fargo has downgraded Eargo to equal-weight, with a price target of $10.
JP Morgan too downgraded the Company to underweight, with a price target of $11.
EAR stock is down $14.62, or 67.5% at $7.05 during the first hour on Thursday.
