BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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.
Investors suffering losses on their iRhythm investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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’ 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.
If you purchased iRhythm common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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