Bragar Eagel & Squire, P.C. Reminds Investors That a Class Action Lawsuit Has Been Filed Against iRhythm Technologies, Inc. and Encourages Investors to Contact the Firm

NEW YORK, March 29, 2021 (GLOBE NEWSWIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of investors who purchased iRhythm Technologies, Inc. (NASDAQ: IRTC) common stock between August 4, 2020 and January 28, 2021 (the “Class Period”). Investors have until April 2, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.

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iRhythm offers a portfolio of outpatient cardiac monitoring services on its platform, the Zio service. iRhythm receives revenue for its Zio service primarily from third party payers, which include commercial payers and government agencies such as the US Centers for Medicare and Medicaid Services (“CMS”). The reimbursement by the CMS and other third party payers is therefore critical to the company’s business.

On January 29, 2021, Medicare administrative contractor Novitas Solutions published actual reimbursement rates under CMS’s Medicare Physician Fee Schedule for 2021. Commenting that these rates were “well below” the earlier codes, a Baird analyst cited an example , where iRhythm was previously reimbursed around $ 311 but is now only $ 42.68.

In that news, iRhythm common stock closed at $ 168.42, down approximately 33% from its January 25, 2021 closing price of $ 251.00. The 33% decrease translates into a one-day loss in market cap of approximately $ 2.4 billion.

The complaint filed on February 1, 2021 alleges that throughout the class period and in violation of the Stock Exchange Act, the defendants made materially false and / or misleading statements and did not communicate any material adverse facts to investors. In particular, Defendants have misrepresented and / or failed to disclose to investors that: (1) iRhythm’s business would suffer from the CMS rulings; (2) the reimbursement rates would actually decrease; (3) A lack of national prices in the CMS rule and fee schedule would lead to uncertainty and weakness in the company’s business. and (4) as a result of the foregoing, the public statements made by the defendants at all relevant times have been materially false and misleading.

If you have purchased iRhythm common stock during the Class Period and have suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to them, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at [email protected], by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.

About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.

Contact information:
Bragar Eagel & Squire, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com

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