The parties have reached a settlement in In re Eargo, Inc., Stockholder Litigation, C.A. No. 2024-0860-JTL, pending in the Delaware Court of Chancery.
The lawsuit was brought on behalf of former Eargo, Inc. stockholders and challenged the fairness of the February 16, 2024 merger through which Patient Square Capital, L.P., Eargo’s controlling stockholder, acquired the shares it did not already own for $2.55 per share.
The settlement, which is subject to final court approval, provides for a cash payment of $7 million for the benefit of the Class of former Eargo minority stockholders whose shares were exchanged for $2.55 per share in the merger. If the settlement is approved by the Court, then the Net Settlement Fund (the settlement amount minus Court-approved attorneys’ fees, expenses, taxes, and administration costs, will be distributed in accordance with the proposed Plan of Allocation. Class members do not need to submit a claim form in order to receive a payment from the Net Settlement Fund. Payments from the Net Settlement Fund to eligible Class members will be made in the same manner in which eligible Class members received the merger consideration.
The Court has scheduled a final approval hearing for January 8, 2027, at 1:30 p.m. Class members who wish to object to the proposed settlement, the Plan of Allocation, or the request for attorneys’ fees and expenses must submit their objections by December 28, 2026, in accordance with the procedures set forth in the Notice.
The settlement remains subject to final Court approval. Additional information, including the full Notice, settlement documents, and information concerning the distribution of settlement proceeds, is available at www.eargostockholdersettlement.com.