Federal Appeals Court Won’t Revive Eargo Investor Insurance Suit

A federal district court properly dismissed a securities lawsuit against hearing-aid seller Eargo Inc. and two executives, the Ninth Circuit affirmed in an unpublished judgment on Friday.

Investor Xiaobin Cai and the IBEW Local 353 Pension Plan failed to allege that Eargo, its chief executive officer, and chief financial officer had the necessary intent to commit securities fraud, the three-judge panel for the US Court of Appeals for the Ninth Circuit said. Many of the company’s statements that the shareholders claimed were misleading were non-actionable puffery or corporate optimism, said Circuit Judges Milan D. Smith, Jr. and Patrick J. Bumatay ...