iRhythm Technologies Investors Can Spearhead Securities Fraud Lawsuit

March 1, 2024 : Investors who purchased shares of iRhythm Technologies, Inc. (NASDAQ: IRTC) face potential losses following a newly filed securities fraud lawsuit. The lawsuit, initiated by Glancy Prongay & Murray LLP (GPM), seeks a lead plaintiff to represent the interests of investors who claim to have suffered losses due to alleged misrepresentations by the company.

The lawsuit contends that iRhythm, a medical device manufacturer specializing in cardiac monitoring technology, engaged in misleading business practices during a specified period known as the “Class Period.” Specifically, the complaint alleges that the company made the following omissions or misrepresentations:

FDA non-compliance: iRhythm allegedly promoted its products for uses not cleared or approved by the Food and Drug Administration (FDA), violating marketing regulations.

Adverse event reporting breaches: The company is accused of failing to disclose adverse events involving its products to the FDA, contravening reporting requirements.

Positive statements lacked basis: Due to the above factors, the lawsuit asserts that iRhythm’s positive statements regarding its business, operations, and future outlook lacked a reasonable basis.

The lawsuit claims that the company’s alleged actions artificially inflated its stock price, causing investor losses when the truth came to light. Investors who purchased iRhythm shares during the Class Period and suffered losses may be eligible to join the lawsuit and seek compensation.

GPM is encouraging potentially affected investors to submit their information for review and evaluation of their eligibility to serve as lead plaintiffs. The lead plaintiff would spearhead the legal action for all lost investors.

It is important to note that the accusations against iRhythm are still allegations. They have yet to be proven in court, and the company will have a chance to defend itself against these claims.