Have you heard of $EAR?
Eargo (ticker: $EAR) is a medical device company whose stock plummeted 50.67% after hours. Eargo makes hearing aids that can be shipped directly to your door. The devices are intended for moderate high-frequency hearing loss … so what’s with the price plunge? 🤯
Well, the US Department of Justice announced its criminal investigation of Eargo “related to insurance reimbursement claims the Company has submitted on behalf of its customers covered by federal employee health plans.” Just last month, the company reported revenue up 43.7% YoY. 😅
Hmm. There could be something ear-ie going on with the hearing aid device industry — after all, Congress passed a law in 2017 permitting over-the-counter sales of hearing aids in order to lower the products’ prices.
Could that have something to do with $EAR’s extraordinary dip? Maybe, but only time will tell…
In the meantime, check out $EAR’s hideous daily chart: