iRhythm Technologies, Inc. (NASDAQ: IRTC)

This lawsuit is for anyone who acquired securities in iRhythm Technologies, Inc. (NASDAQ: IRTC) from January 11, 2022 through May 30, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by telling investors that the Company’s Zio AT real-time heart monitor was suitable for, and marketing the device to high-risk patients when the Company knew that the FDA only approved the device for non-critical patients because the FDA considers the device unreliable for high-risk patients.

On November 1, 2022, iRhythm released its revised fourth quarter and full year 2022 financial guidance, issuing an “Advisory Notice” to customers of its real-time heart monitor, Zio AT, and lowered its Zio AT forecast for the quarter from 40% to 20%. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then. On November 4, 2022, iRhythm elaborated on its Customer Advisory Notice, revealing that it had initiated it on September 28, 2022 as a result of its “assessment of topics raised in an FDA inspection focused on Zio AT,” after which the FDA issued an inspection observation report on Form 483, typically issued in cases involving violations of the Food Drug and Cosmetic Act and related Acts. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on May 4, 2023, iRhythm disclosed that it had received a subpoena from the Civil Division of the U.S. Department of Justice (“DOJ”), requesting documents related to certain products and services. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on May 30, 2023 iRhythm disclosed that it had received a warning letter from the FDA detailing several serious issues with the Zio AT device, including the device having only been approved for non-critical patients and unreliable for high-risk patients, despite the Company’s marketing of the device to high-risk patients. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in iRhythm Technologies, Inc. (NASDAQ: IRTC) from January 11, 2022 through May 30, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.