PHILADELPHIA, Feb. 12, 2021 /PRNewswire/ -- Berger Montague is investigating potential securities fraud claims against iRhythm Technologies, Inc. ("iRhythm" or the "Company") on behalf of investors who purchased iRhythm securities (NASDAQ: IRTC) between August 4, 2020 and January 28, 2021 (the "Class Period").
If you purchased iRhythm securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague's investigation, please contact attorneys Andrew Abramowitz at firstname.lastname@example.org or (215) 875-3015, or Donnell Much at email@example.com or (215) 875-4667, or contact us at: www.bergermontague.com/irhythm.
iRhythm is a digital healthcare company that offers ambulatory cardiac monitoring services on its Zio platform. The Company receives revenues primarily from third-party payors such as the U.S. Centers for Medicare and Medicaid Services ("CMS").
A recently filed lawsuit accuses the Company and its senior management with misrepresenting or failing to disclose throughout the Class Period that: (1) iRhythm's business would suffer as a result of the CMS's 2021 rulemaking; (2) reimbursement rates would significantly decline; and (3) a lack of national pricing in the CMS rule and fee schedule would cause uncertainty and weakness in iRhythm's business.
Beginning on August 4, 2020, the day after CMS announced its proposed reimbursement rates for 2021, iRhythm failed to acknowledge the potentially detrimental impact of these new rates on the Company's financial performance. To the contrary, defendants conditioned investors to the fact that there would not be an adverse impact at all.
However, on January 29, 2021, Novitas Solutions, the Medicare Administrative Contractor, published the actual reimbursement rates under the CMS's 2021 Medicare Physician Fee Schedule. An analyst with Baird immediately commented that these rates were "way lower than" the former codes. For instance, for one particular service, iRhythm was previously reimbursed around $311, but under the new schedule was receiving $42.68.
Following this news, the price of iRhythm's common stock closed at $168.42 on January 29, 2021, down approximately 33% from its January 28, 2021 close of $251.00.
If you purchased iRhythm securities during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is April 2, 2021. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding iRhythm are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Donnell Much, Associate
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