SAN FRANCISCO, Nov. 25, 2019 (GLOBE NEWSWIRE) -- Hagens Berman urges iRhythm Technologies, Inc. (NASDAQ: IRTC) investors who have suffered losses before Nov. 13, 2019 to submit their losses now to learn if they qualify to recover compensable damages. The firm has opened an investigation into iRhythm and investors may have valuable claims under the federal securities laws.
Relevant Holding Period: Before Nov. 13, 2019
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510-725-3000
iRhythm Technologies (IRTC) Investigation:
The investigation centers on the accuracy of iRhythm’s historic financial statements.
Between Mar. 13, 2019 and Mar. 27, 2019, certain analysts began publicly questioning (a) the sustainability of third party reimbursements to the Company attributable to sales of its Zio XT Extended Holter patch device, (b) whether the Company’s and management’s statements about the total addressable market for iRhythm products may have been misleading, and (c) whether the Company and management may have used “cookie jar” style accounting in accruing for bad debt expense and contractual allowances.
During the period in which these reports were published, the price of iRhythm shares significantly fell.
Recently, on Nov., 2019, iRhythm announced it will not timely file its Form 10-Q for the period ended Sept. 30, 2019 due to “errors affecting prior periods in the course of preparing the Form 10-Q that require further analysis” and “[t]hese errors may result in the correction of previously issued annual and quarterly financial statements.”
This news sent the price of iRhythm shares down as much as $11.13, or down about 16.5%, during intraday trading on Nov. 13, 2019.
Since then, on Nov. 19, 2019, iRhythm announced that, as a result of its untimeliness, Nasdaq sent the company a letter of noncompliance with listing requirements.
“We’re focused on recovering investors’ substantial losses, the matters raised in the analyst reports, the seeming admission of improper accounting, and the extent to which investors may have been misled,” said Hagens Berman partner Reed Kathrein.
If you purchased shares of iRhythm and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding iRhythm should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email IRTC@hbsslaw.com.
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Contact:
Reed Kathrein, 510-725-3000