Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces the Filing of a Securities Class Action on Behalf of iRhythm Technologies, Inc. (IRTC) Investors

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired iRhythm Technologies, Inc. (“iRhythm” or the “Company”) (NASDAQ: IRTC) common stock between August 4, 2020 and January 28, 2021, inclusive (the “Class Period”). iRhythm investors have until April 2, 2021 to file a lead plaintiff motion.

If you suffered a loss on your iRhythm investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/irhythm-technologies-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [e-mail] to learn more about your rights.

On December 1, 2020, the Centers for Medicare and Medicaid Services (“CMS”) issued its final rule, which finalized reimbursement codes but did not provide national pricing for certain products and services offered by iRhythm.

On this news, the Company’s stock price opened at $183.00 on December 2, 2020, down from the December 1, 2020 close of $240.64, thereby injuring investors.

On January 29, 2021, Medicare Administrative Contractor Novitas Solutions published actual reimbursement rates under the CMS’s 2021 Medicare Physician Fee Schedule. A research analyst from Baird indicated that these are "way lower” than former codes, citing one example where iRhythm was previously reimbursed around $311, but was now receiving just $42.68.

On this news, the Company’s stock price fell $82.58, or 32.90%, to close at $168.42 per share on January 29, 2021, thereby injuring investors further.

The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) iRhythm’s business would suffer as a result of the CMS’ 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, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired iRhythm common stock during the Class Period, you may move the Court no later than April 2, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [e-mail], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

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