IRHYTHM TECHNOLOGIES, INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
iRhythm Technologies, Inc.
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired iRhythm Technologies, Inc. (“iRhythm” or the “Company”) (NASDAQ: IRTC) common stock between January 11, 2022 and May 30, 2023, inclusive. The lawsuit seeks to recover iRhythm shareholders’ investment losses.
If you purchased common stock in iRhythm between January 11, 2022 and May 30, 2023, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
According to the Complaint, iRhythm is a digital healthcare company that develops and manufactures heart monitoring devices designed to diagnose arrhythmias. One of the Company’s main products, Zio AT, is a heart monitor patch with a transmittal device that reports arrhythmic events to iRhythm’s monitoring labs, which then notify the prescribing physician of the arrhythmic event. According to the Company, this allows physicians to diagnose high-risk arrhythmic events in “near real-time.” These types of heart monitors, which are approved for high-risk patients and provide near real-time alerts, are called mobile cardiac telemetry monitors, also referred to as “real-time” monitors. Realtime monitors sell for a premium over monitors that do not provide real-time notifications of arrhythmic events.
On May 30, 2023, after the market closed, iRhythm disclosed the receipt of a warning letter from the FDA that detailed several serious issues with the Zio AT device (the “Warning Letter”). Among other things, the Warning Letter criticized iRhythm’s marketing of the Zio AT as a “mobile cardiac telemetry monitor” that provides “near real-time monitoring” and is approved for use in “high-risk patients” as false. In truth, the Zio AT device was only approved for non-critical patients and suffered from critical flaws that imperiled high-risk patients. For example, iRhythm imposed an arbitrary transmission limit on the number of times the Zio AT can transmit data and failed to communicate this to providers and end-users. Critically, once the transmission limit is reached, the patient’s data stops being transmitted, and the device can no longer be used for its intended purpose and cannot be relied upon by high-risk patients, as iRhythm stated. The Warning Letter also outlined other serious issues with the Zio AT device that iRhythm had known of since at least 2017 yet failed to disclose to the FDA, patients, or investors.
On this news, iRhythm’s stock price fell $7.41 per share, or 6.08%, to close at $114.27 per share on May 31, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than April 8, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
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