NEW YORK, Feb. 5, 2021 /PRNewswire/ -- Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of iRhythm Technologies, Inc. ("iRhythm" or the "Company") (NASDAQ: IRTC) from August 4, 2020 and January 28, 2021 (the "Class Period"). The lawsuit filed in the United States District Court for the Northern District of California alleges violations of the Securities Exchange Act of 1934.
If you purchased iRhythm securities, and/or would like to discuss your legal rights and options please visit iRhythm Shareholder Class Action Lawsuit or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com
The complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as 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.
The truth began to be revealed on December 1, 2020, when the CMS issued its final rule, which finalized the codes as anticipated, but did not finalize national pricing for certain products and services offered by iRhythm. Shares opened on December 2, 2020 at $183.00 each, down from the December 1, 2020, close of $240.64 per share.
Then 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.
If you wish to serve as lead plaintiff, you must move the Court no later than April 2, 2021. 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.
If you purchased iRhythm securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/irhythmtechnologiesinc-irtc-shareholder-class-action-lawsuit-stock-fraud-359/apply/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2020 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Matthew E. Guarnero
Bernstein Liebhard LLP
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