iRhythm Technologies, Inc

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.