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iRhythm Technologies, Inc. Class Action Lawsuit - IRTC

43 days left to seek lead plaintiff status

Case Summary

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The iRhythm class action lawsuit seeks to represent purchasers or acquirers of iRhythm Technologies, Inc. (NASDAQ: IRTC) common stock between January 11, 2022 and May 30, 2023, inclusive (the “Class Period”).  Captioned Glazing Employers and Glaziers’ Union Local #27 Pension and Retirement Fund v. iRhythm Technologies, Inc., No. 24-cv-00706 (N.D. Cal.), the iRhythm class action lawsuit charges iRhythm and certain of iRhythm’s top current and former executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the iRhythm class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the iRhythm class action lawsuit must be filed with the court no later than April 8, 2024.

CASE ALLEGATIONS: iRhythm is a digital healthcare company that develops and manufactures heart monitoring devices designed to diagnose arrhythmias.

The iRhythm class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) iRhythm failed to comply with the U.S. Food and Drug Administration’s (“FDA”) marketing regulations and prohibitions against the promotion of products for uncleared and unapproved uses contrary to representations it made to investors; and (ii) iRhythm failed to report adverse events and other missed arrhythmic events to the FDA in violation of the reporting requirements of Medical Device Reporting regulations.

The iRhythm class action lawsuit further alleges that on November 1, 2022, iRhythm provided revised revenue guidance for 2022 of between $407 million and $411 million, a quarter after iRhythm had increased guidance to between $415 million and $420 million.  iRhythm’s CEO, defendant Quentin Blackford, explained that iRhythm reduced the revenue outlook for the full year in part because it had “voluntarily issued a Customer Advisory Notice to [its] Zio AT customers” and “ha[s] seen reduced growth with Zio AT within the fourth quarter-to-date,” the complaint further alleges.  On this news, the price of iRhythm common stock fell more than 4%, according to the complaint.

Then, on November 4, 2022, iRhythm disclosed that it initiated the Customer Advisory Notice on September 28, 2022, following issues raised by the FDA during an inspection that culminated in an inspection observation report on Form 483, and that the Customer Advisory Notice warned patients of a “labeling correction” related to “the device’s maximum transmission limits during wear,” as well as other critical issues that prevent the device from working as advertised, the complaint further alleges.  On this news, the price of iRhythm common stock fell, according to the complaint.

Thereafter, as the complaint further alleges, on May 4, 2023, iRhythm announced that “on April 4, 2023, [it] received a Subpoena Duces Tecum from the Consumer Protection Branch, Civil Division of the U.S. Department of Justice, requesting production of various documents regarding [its] products and services.”  On this news, the price of iRhythm common stock fell nearly 7%, according to the complaint.

Finally, on May 30, 2023, iRhythm disclosed that it had received a Warning Letter from the FDA, which “resulted from the inspection of the Company’s facility located in Cypress, California that concluded in August 2022” and “alleges non-conformities to regulations for medical devices, including medical device reporting requirements, relating to the Company’s Zio AT System and medical device quality system requirements,” the complaint further alleges. On this news, the price of iRhythm common stock fell more than 6%, according to the complaint. 

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired iRhythm common stock during the Class Period to seek appointment as lead plaintiff in the iRhythm class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the iRhythm class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the iRhythm class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the iRhythm class action lawsuit.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list.  And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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