Eargo Finalizes Agreement with US to Resolve DOJ Investigation

By Stephen Nakrosis

Eargo Inc. said on it has reached an agreement to resolve a previously disclosed investigation by the U.S. Department of Justice.

The maker of hearing aids said it entered a civil agreement with no admission of liability. Under the terms of the deal, the company will pay about $34.4 million to the government.

The DOJ said the agreement resolves allegations the company "submitted or caused the submission of claims for hearing aid devices for reimbursement to the Federal Employees Health Benefits Program that contained unsupported hearing loss diagnosis codes."

Eargo said it denies the allegations in the settlement agreement, and said the allegations did not pertain to the quality or performance of the product.

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(END) Dow Jones Newswires

04-29-22 1752ET