30 Mar, 2021, 08:00 ET
LOS ANGELES, March 30, 2021 /PRNewswire/ -- 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 August 4, 2020 and January 28, 2021, inclusive (the "Class Period"). iRhythm investors have until April 2, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On December 1, 2020, the Centers for Medicare and Medicaid Services ("CMS") issued its final rule, which finalized reimbursement codes but did not provide national pricing for certain products and services offered by iRhythm.
On this news, the Company's stock price opened at $183.00 on December 2, 2020, down from the December 1, 2020 close of $240.64, thereby injuring investors.
On January 29, 2021, Medicare Administrative Contractor Novitas Solutions published actual reimbursement rates under the CMS's 2021 Medicare Physician Fee Schedule. A research analyst from Baird indicated that these are "way lower" than former codes, citing one example where iRhythm was previously reimbursed arounnd $311, but was now receiving just $42.68.
On this news, the Company's stock price fell $82.58, or 32.90%, to close at $168.42 per share on January 29, 2021, thereby injuring investors further.
The complaint filed 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'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, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased iRhythm securities during the Class Period, you may move the Court no later than April 2, 2021 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 securities, 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, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], 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.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
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