On February 14, 2023, Judge Charles R. Breyer of the United States District Court for the Northern District of California granted a motion to dismiss a putative securities class action alleging that a hearing aid company (the “Company”) and its officers, directors, and IPO underwriters falsely or misleadingly inflated the Company’s revenue and growth opportunities and allegedly downplayed an insurance audit, leading to a Department of Justice investigation for insurance fraud. In re Eargo, Inc. Sec. Litig., No. 21-cv-08597 (N.D. Cal. Feb. 14, 2023). Plaintiffs alleged violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the “Securities Act”) against all defendants, and violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated thereunder against the Company and its officers. The Court granted defendants’ motion to dismiss, holding that plaintiffs failed to sufficiently plead falsity and scienter.
According to the amended complaint (the “Complaint”), the Company makes and directly sells hearing aids to consumers. Plaintiffs alleged that unlike the traditional hearing aid sales model, which requires customers to make in-person visits to hearing aid professionals who examine the customer, the Company developed a telecare model using an in-house team of individuals licensed in one or more states to advise customers on hearing aid needs. Plaintiffs alleged that initially the Company primarily...
The Green Party has suspended a London council candidate who shared social media posts blaming Israel for the arson attacks on Jewish volunteer ambulances in March. A repost on the social media pr...