Eargo, Inc. has entered into a civil settlement agreement with the United States to resolve the previously disclosed investigation by the U.S. Department of Justice (the "DOJ") related to insurance reimbursement claims submitted to various federal employee health plans under the Federal Employee Health Benefits ("FEHB") program. Eargo fully cooperated with the DOJ's investigation, the resolution of which allows the Company to continue to move forward with its core mission of improving the quality of life of people with hearing loss. Eargo denies the allegations in the settlement agreement, and the settlement agreement is not an admission of liability by Eargo.

The allegations did not pertain to the quality or performance of the product. The Company's payment of approximately $34.4 million to the government will resolve allegations that Eargo submitted or caused the submission of claims for payment to the FEHB program using unsupported hearing loss-related diagnosis codes.