iRhythm Technologies, Inc.
Lead Plaintiff Deadline: 04/02/2021
SUMMARY OF CASE:
A securities class action has been filed against iRhythm Technologies, Inc. (IRTC)) on behalf of all purchasers of iRhythm common stock between August 4, 2020 through January 28, 2021. This case has been filed in the USDC – N.D.CA.
iRhythm Technologies provides wearable biosensor devices to detect and monitor heart arrythmias. On December 2, 2020, iRhythm issued a press release stating that new Centers for Medicare and Medicaid Services (CMS) physician fee guidelines would change how payments for its Zio XT remote cardiac monitoring services would be calculated. On this news, the Company shares dropped approximately 20%. Then on January 29, 2021, a Baird research analyst noted that Medicare Administrative Contractor rates affecting heart monitors are “way lower” than those published in the Medicare Physician Fee Schedule. On this news, IRTC shares have fallen approximately 45% in intraday trading.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts to investors. Specifically, Defendants misrepresented and/or failed to disclose to investors that: (1) iRhythm’s business would suffer as a result of the CMS’ 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 the Company’s business; and (4) as a result