An Eargo Inc. investor sued its senior leaders in Delaware, claiming they engineered a $100 million financing deal with Patient Square Capital without giving shareholders any meaningful information about the transaction or any way to stop it.
The lawsuit, filed Wednesday, targets seven members of the hearing aid manufacturer’s board, including its CEO and non-executive chairman. It accuses them of structuring a $100 million note sale to Patient Square on terms making the takeover effectively a done deal even if investors vote it down.
Shareholders can only avoid being diluted by the conversion of Patient Square’s notes into common stock ...
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