NEW YORK, Feb. 07, 2024 (GLOBE NEWSWIRE) — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against iRhythm Technologies, Inc. (“iRhythm” or “the Company”) (NASDAQ: IRTC) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired iRhythm securities between January 11, 2022 and May 30, 2023, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/IRTC.
Throughout the Class Period, iRhythm represented to investors that the Zio AT monitor was a real-time monitor intended for a target audience of high-risk patients. The Company’s legacy monitor and main product, Zio XT, is a heart monitor intended for non-critical patients, as it does not provide real-time reporting. The Company touted the potential growth for the Zio AT as an innovative product that had only just begun to penetrate the market for real-time monitoring, which investors looked upon favorably given the premium selling price associated with devices approved for high-risk patients. As a result of these representations, the price of iRhythm common stock traded at artificially inflated prices throughout the Class Period.
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.
These disclosures caused the price of iRhythm common stock to decline by $7.41 per share, or 6.1%. Therefore, as a result of iRhythm’s actions and the precipitous decline in the market value of the Company’s common stock, investors have suffered significant losses and damages.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/IRTC or you may contact Peretz Bronstein, Esq. or his Law Clerk and Client Relations Manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in iRhythm you have until April 8, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
332-239-2660 | [email protected]
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