Here's Why Eargo Stock Is Imploding Today

Shares of Eargo (NASDAQ: EAR), a hearing aid manufacturer, are sinking in response to the disclosure of a federal investigation the company made to investors after markets closed on Wednesday. The medical device stock was down 68.5% as of 10:40 a.m. EDT on Thursday.

Eargo reported net revenue that rose 44% year over year to $23 million in the second quarter, but a recent SEC disclosure has investors questioning the integrity of the company's sales figures. On Sept. 21, Eargo was informed that it is the target of a criminal investigation by the U.S. Department of Justice.

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Source Fool.com