COMPANY |
iRhythm Technologies, Inc. |
COURT |
United States District Court for the Northern District of California |
CASE NUMBER |
21-cv-00776 |
JUDGE |
Honorable Edward Milton Chen |
CLASS PERIOD |
August 4, 2020 - January 28, 2021 |
SECURITY TYPE |
All Securities |
Case Background:
On February 1, 2021 the initial complaint in this securities class action was filed against iRhythm Technologies, Inc. (“iRhythm” or the “Company”) and certain of iRhythm’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action brought on behalf of all persons who purchased or acquired iRhythm securities between August 4, 2020 and July 13, 2021 both dates inclusive (the “Class Period”).
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, as well as failed to disclose material adverse facts to investors. Specifically, the complaint alleges that Defendants misrepresented and/or failed to disclose to investors 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 the Company’s business; and (4) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
Current Status of Case:
On August 2, 2021, Lead Plaintiff filed a complaint (the “Complaint”). On September 13, 2021, the Court Ordered Plaintiff to file an amended complaint (the “Amended Complaint”) by September 24, 2021. The Amended Complaint was filed on that date. On March 31, 2022, the Court issued an Order granting Defendants’ Motion to Dismiss with prejudice and closed the case. Lead Plaintiff filed an appeal of the dismissal. The appeal was fully briefed and the Ninth Circuit Court of Appeals held oral argument on July 13, 2023 and took the matter under advisement. This action is on appeal and is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.