New allegations by Eargo Inc. shareholders fail to establish that the hearing aid company and two executives intentionally misled investors about insurance requirements as it expanded beyond an out-of-pocket business model, a federal court ruled.
The investors will have one more chance to fix their proposed class complaint, Judge Charles R. Breyer said Thursday for the US District Court for the Northern District of California.
The investors alleged that Eargo’s business model, which allowed patients to avoid an in-person audiology examination, was incompatible with insurance requirements for federal employees and retirees—its new target customers. Those customers’ insurance under the Federal ...
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