Investor Sues After iRhythm Stock Loses One-Third of Value
February 2, 2021
On Monday a shareholder filed suit in the Northern District of California against iRhythm Technologies, Inc. (iRhythm) for federal securities violations after its stock tumbled once in December and again in January. The plaintiff, on behalf of a putative class of investors, accused the company and its former CEO, Kevin M. King, of misleading investors about the impact of a U.S. Centers for Medicare and Medicaid Services (CMS) reimbursement rate change.
The complaint explains that San Francisco, California-headquartered iRhythm is a digital healthcare company that offers a suite of “ambulatory cardiac monitoring services” that provide an alternative way of diagnosing cardiac arrhythmias. The filing further contends that the company receives payments chiefly from third-party payors, which include commercial payors and government agencies, such as the CMS. Thus, such reimbursements are “critical” to i