Eargo (NASDAQ:EAR) stock is rocketing higher on Thursday thanks to news from the Department of Justice (DOJ) concerning an investigation into the company.
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Today’s news comes from an 8-K filing with the U.S. Securities and Exchange Commission (SEC). In that filing, the company reveals that the DOJ confirmed the criminal investigation is no longer ongoing.
Instead, the DOJ has referred the case to the Civil Division of the DOJ and the U.S. Attorney’s Office for the Northern District of Texas. Eargo says it will continue to cooperate with the investigation.
So what is this investigation all about? It has to do with insurance reimbursement claims submitted to Eargo for customers under the Federal Employee Health Benefits program. News of the investigation was first revealed on Sept. 21, 2021.
Eargo is a medical device company that develops hearing aids. The company’s hearing aids are incredibly small, making them nearly invisible to other people. The devices also include app support so users can fine-tune them with a smartphone.
Investors are celebrating the news from the DOJ today and EAR stock is seeing heavy trading as a result. As of this writing, more than 77 million shares of the company’s stock have changed hands. That’s a massive increase over the company’s daily average trading volume of about 1.7 million shares.
EAR stock is up 48.4% as of Thursday morning.
Investors looking for more recent stock market news will want to stick around!
We’ve got more stock market news to dive into from Thursday! That includes Nikola (NASDAQ:NKLA) stock rising higher on a truck deal, what to know about the recent tech selloff, as well as details on Dave going public today. You can find all of that info at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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