By Stephen Nakrosis 
 

Shares of hearing aid maker Eargo Inc. are lower in Wednesday's late-trading session, after the company said it "was informed that it is the target of a criminal investigation by the U.S. Department of Justice related to insurance-reimbursement claims the company has submitted on behalf of its customers covered by federal employee health plans."

Eargo said it is cooperating with the investigation and "intends to work with the government with the objective of validating the process to support any future claims that the company may submit for reimbursement."

At 6:42 p.m. ET, the company's shares were trading 51.08% lower at $10.60 each. Volume at the time topped 1.1 million shares.

The company's stock finished the day's regular-trading session with a 1.77% loss, closing at $21.67.

The company's stock hit a 52-week low of $19.25 a share on Sept. 13.

Eargo also said it was withdrawing its financial guidance for the fiscal year ending Dec. 31, 2021.

 

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

September 22, 2021 19:04 ET (23:04 GMT)

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