Kessler Topaz Meltzer & Check, LLP Alerts Shareholders of Securities Fraud Class Action Lawsuit Filed Against iRhythm Technologies, Inc. (IRTC)
RADNOR, Pa., March 14, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a class action lawsuit for securities fraud has been filed in the U.S. District Court for the Northern District of California on iRhythm Technologies, Inc. (NASDAQ : IRTC) (“iRhythm”) on behalf of those who have purchased or acquired iRhythm common stock between August 4, 2020 and January 28, 2021including (the “Class Period”).
Investor Deadline Alert: Investors who have bought or acquired iRhythm common stock during the lesson period, no later than April 2, 2021try to be appointed as the plaintiff’s principal representative of the class. For more information or to learn how to participate in this litigation, 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; per email to email@example.com; or click https://www.ktmc.com/irhythm-technologies-inc-securities-class-action?utm_source=PR&utm_medium=link&utm_campaign=irhythm
According to the complaint, iRhythm is a digital health company that offers a portfolio of outpatient heart monitoring services on its platform, 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”). On August 3, 2020, the CMS released the proposed rule for the Medicare Physician Fee Plan for the calendar year 2021 that updates payment policies, payment rates, and other provisions for services provided under the Medicare Physician Fee Plan on or after January 1 To be provided in 2021.
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 the design and construction “of the language used in the rule proposed by the CMS, and that iRhythm is” well aware and well informed “of the proposed CMS rules. King praised the impact of the proposed rule on iRhythm’s business and revenue, stating, “[i]If we were to apply the new codes and proposed rates, our 2019 revenues would increase slightly ”and that“ our overall business will increase slightly ”.
However, the truth emerged on December 1, 2020 when the CMS issued its final rule that finalized the codes as expected but did not finalize national prices for certain products and services offered by iRhythm. On December 2, 2020, iRhythm common stock opened at $ 183.00 per share, compared to the December 1, 2020 closing price of $ 240.64.
On January 29, 2021, Medicare administrative contractor Novitas Solutions published the actual reimbursement rates under the CMS Medicare Physician Fee Schedule of 2021. Commenting on a Baird analyst that these rates were “well below” the earlier codes, cited an example where iRhythm was previously reimbursed around $ 311 but now received only $ 42.68. According to the news, iRhythm’s common stock closed at $ 168.42 on January 29, 2021, down approximately 33% from its January 28, 2021 closing price of $ 251.00.
iRhythm investors can no later than April 2, 2021, attempt to be appointed as the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other attorney, or choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of those of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)