CONTACT KTMC

Kessler Topaz Meltzer & Check, LLP: Investor Class Action Filed Against iRhythm Technologies, Inc. for Securities Fraud Violations

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or acquired iRhythm Technologies, Inc. (“iRhythm”) (NASDAQ: IRTC) common stock between August 4, 2020 and January 28, 2021, inclusive (the “Class Period”).    
 

iRhythm investors may receive additional information about the case by clicking the link "Submit Your Information" above.


According to the complaint, iRhythm is a digital healthcare company that 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 includes commercial payors and government agencies, such as the U.S. Centers for Medicare and Medicaid Services (“CMS”). On August 3, 2020, the CMS issued its Calendar Year 2021 Medicare Physician Fee Schedule Proposed Rule, which would update payment policies, payment rates, and other provisions for services to be furnished under the Medicare Physician Fee Schedule on or after January 1, 2021.

The Class Period begins on August 4, 2020, when iRhythm held a conference call with analysts to discuss the CMS proposed rule.  During this call, Kevin M. King (“King”), then President and CEO of iRhythm, discussed at length how iRhythm “worked hand-in-hand with the various governing bodies . . . in drafting and constructing” the language used in the CMS’s proposed rule, and that iRhythm was “well aware and well informed” of the proposed CMS rules. King praised the impact the proposed rule would have on iRhythm’s business and revenues, stating that “[i]f we were to apply the new codes and proposed rates, our 2019 revenues would increase slightly,” and that “our total business will be up slightly overall.”

However, the truth began to be revealed on December 1, 2020, when the 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 December 2, 2020, iRhthym’s common stock opened at $183.00 per share, down from the December 1, 2020 close of $240.64.

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. Following this news, the price of iRhythm’s common stock closed at $168.42 on January 29, 2021, down approximately 33% from its January 28, 2021 close of $251.00.

The complaint alleges that throughout the Class Period, the 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 iRhythm’s business; and (4) as a result of the foregoing, the defendants’ public statements were materially false and misleading at all relevant times.  

If you are a member of the class described above, you may no later than April 2, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter.  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:  James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll-free at (844) 887-9500; 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.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 
1-844-887-9500 (toll free) or 1-610-667-7706 
Or by e-mail at info@ktmc.com 

Please complete this form relating to your transactions for iRhythm Technologies, Inc. (NASDAQ: IRTC) common stock between August 4, 2020 and January 28, 2021, inclusive (the “Class Period”).

You may also contact James Maro, Jr., Esq. or Adrienne Bell, Esq. at 610.667.7706 or toll free at 844.887.9500, or you may submit your information via email at info@ktmc.com, or you may click here to print a PDF of this form.
 

* Denotes required field
 
 
 
 
 
 
# of Shares
Price per Share
 
 
 
Principal Amount
Amount Paid
Series or CUSIP
 
 
 
# of Contracts
Price per Contract
Exercise Price
Expiration Date
Did you purchase shares of iRhythm Technologies, Inc. prior to the Class Period?
Are you a current or former employee of iRhythm Technologies, Inc.?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
I agree to the KTMC
disclaimer
I would like to receive
new case alerts by email