February 01, 2021 - An investor in shares of iRhythm Technologies, Inc. (NASDAQ: IRTC) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by iRhythm Technologies, Inc. in connection with certain allegedly false and misleading statements made between August 4, 2020 and January 28, 2021.
San Francisco, CA based iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. iRhythm Technologies, Inc. reported that its annual Total Revenue rose from $147.29 million in 2018 to $214.55 million in 2019 and that its Net Loss increased from $48.28 million in 2018 to $54.56 million in 2019.
On December 2, 2020, iRhythm announced 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. Then on January 29, 2021, a research analyst noted that Medicare Administrative Contractor rates affecting heart monitors are “way lower” than those published in the Medicare Physician Fee Schedule. Shares of iRhythm Technologies, Inc. (NASDAQ: IRTC) declined from $282.64 per share on January 20, 2021 to as low as $135.65 per share on January 29, 2021. According to the complaint the plaintiff alleges on behalf of purchasers of iRhythm Technologies, Inc. (NASDAQ: IRTC) common shares between August 4, 2020 and January 28, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 4, 2020 and January 28, 2021, the defendants made materially false and/or misleading statements, and failed to disclose to investors that iRhythm's business would suffer as a result of the U.S. Centers for Medicare and Medicaid Services' ( CMS ) rulemaking, that reimbursement rates would in fact plummet, that a lack of national pricing in the CMS rule and fee schedule would cause uncertainty and weakness in the Company's business, and that as a result of the foregoing, the iRhythm Defendants' public statements were materially false and misleading at all relevant times.