The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of iRhythm Technologies, Inc. (IRTC) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired iRhythm Technologies, Inc. (“iRhythm” or the “Company”) (NASDAQ: IRTC) common stock between January 11, 2022 and May 30, 2023, inclusive (the “Class Period”). iRhythm investors have until April 8, 2024 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On November 1, 2022, iRhythm released its revised fourth quarter and full year 2022 financial guidance, issuing an “Advisory Notice” to customers of its real-time heart monitor, Zio AT, and lowered its Zio AT forecast for the quarter from 40% to 20%. On this news, iRhythm’s stock price fell $19.67, or 15.5%, over two consecutive trading days to close at $107.10 per share on November 3, 2022, thereby injuring investors.

Then, on November 4, 2022, iRhythm elaborated on its Customer Advisory Notice, revealing that it had initiated it on September 28, 2022 as a result of its “assessment of topics raised in an FDA inspection focused on Zio AT,” after which the FDA issued an inspection observation report on Form 483, typically issued in cases involving violations of the Food Drug and Cosmetic Act and related Acts. On this news, iRhythm’s stock price fell $2.43, or 2.4%, to close at $100.44 per share on November 7, 2022.

Then, on May 4, 2023, iRhythm disclosed that it had received a subpoena from the Civil Division of the U.S. Department of Justice (“DOJ”), requesting documents related to certain products and services. On this news, iRhythm’s stock price fell $9.25, or 6.9%, to close at $124.79 per share on May 5, 2023.

Then, on May 30, 2023 iRhythm disclosed that it had received a warning letter from the FDA detailing several serious issues with the Zio AT device, including the device having only been approved for non-critical patients and unreliable for high-risk patients, despite the Company’s marketing of the device to high-risk patients. On this news, iRhythm’s stock price fell $7.41, or 6.1%, to close at $114.27 per share on May 31, 2023, thereby injuring investors further.

The complaint filed in this class action 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 failed to comply with the FDA’s marketing regulations and prohibitions against the promotion of products for uncleared and unapproved uses contrary to the representations it made to investors; (2) iRhythm failed to report adverse events to the FDA in violation of the reporting requirements of Medical Device Reporting regulations; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased iRhythm common stock during the Class Period, you may move the Court no later than April 8, 2024 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 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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