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NEW YORK, March 29, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of investors that purchased iRhythm Technologies, Inc. (NASDAQ: IRTC) common stock between August 4, 2020 and January 28, 2021 (the “Class Period”). Investors have until April 2, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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iRhythm offers a portfolio of ambulatory cardiac monitoring services on its platform, called the Zio service. iRhythm receives revenue for its Zio service primarily from third-party payors, which include commercial payors and government agencies, such as the U.S. Centers for Medicare and Medicaid Services (“CMS”). Reimbursement from the CMS and other third-party payors is therefore critical to the Company’s business.
On January 29, 2021, Medicare Administrative Contractor Novitas Solutions published actual reimbursement rates under the CMS’ 2021 Medicare Physician Fee Schedule. A Baird analyst commented that these rates were “way lower than” the former codes, citing one example where iRhythm was previously reimbursed around $311, but was now receiving just $42.68.
On this news, the price of iRhythm common stock closed at $168.42, down approximately 33% from its January 28, 2021 close of $251.00. The 33% drop represents a one-day loss in market capitalization of approximately $2.4 billion.
The complaint, filed on February 1, 2021, alleges that throughout the Class Period and in violation of the Exchange Act, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts to investors. Specifically, defendants misrepresented and/or 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 of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.
If you purchased iRhythm common stock during the Class Period and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.