iRhythm Technologies, Inc. Class Action Lawsuit
- Company Name
- iRhythm Technologies, Inc.
- Stock Symbol
- Class Period
- August 4, 2020 to January 28, 2021
- Motion Deadline
- April 2, 2021
- Northern District of California
The iRhythm Technologies, Inc. class action lawsuit charges iRhythm and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of iRhythm common stock between August 4, 2020 and January 28, 2021, inclusive (the “Class Period”). The iRhythm class action lawsuit was commenced on February 1, 2021 in the Northern District of California and is captioned Habelt v. iRhythm Technologies, Inc., No. 21-cv-00776.
iRhythm is a digital healthcare company that seeks to redefine the way cardiac arrythmias are clinically diagnosed by combining iRhythm’s wearable biosensing technology with cloud-based data analytics and deep-learning capabilities. iRhythm offers a portfolio of ambulatory cardiac monitoring services on its platform, called the Zio service. iRhythm receives revenue for its Zio service primarily from third-party payors, which include commercial payors and government agencies, such as the U.S. Centers for Medicare and Medicaid Services (“CMS”).
The iRhythm class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) iRhythm’s business would suffer as a result of the CMS’s rulemaking; (2) reimbursement rates would in fact plummet; (3) a lack of national pricing in the CMS rule and fee schedule would cause uncertainty and weakness in iRhythm’s business; and (4) as a result of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.
On December 1, 2020, CMS issued its final rule, which finalized the codes as anticipated, but did not finalize national pricing for certain products and services offered by iRhythm. On this news, the price of iRhythm common stock fell nearly 24%.
Then, on January 29, 2021, Medicare Administrative Contractor Novitas Solutions published actual reimbursement rates under the CMS’s 2021 Medicare Physician Fee Schedule. A Baird analyst commented that these rates were “way lower than” the former codes, citing one example where iRhythm was previously reimbursed around $311, but was now receiving just $42.68. On this news, the price of iRhythm common stock fell by approximately 33%, further damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased 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 of the iRhythm class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the iRhythm class action lawsuit or have questions concerning your rights regarding the iRhythm class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the iRhythm class action lawsuit must be filed with the court no later than April 2, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.