iRhythm Technologies, Inc. ($IRTC) $45 Million Investor Settlement
iRhythm Technologies, Inc. has agreed to a proposed $45 million settlement to resolve investor claims tied to statements about Zio AT’s data transmission, use in high-risk patients, and the accuracy of the data reported by the device.
Outline:
On November 1, 2022, iRhythm cut guidance after weaker Zio AT utilization. On November 4, 2022, it disclosed a Customer Advisory Notice tied to FDA inspection issues but kept promoting Zio AT’s prospects. On May 4, 2023, the company disclosed a DOJ subpoena, and later an FDA warning letter challenged how Zio AT was marketed for high-risk patients. $IRTC fell on the news, and the case has now moved to a proposed $45 million settlement.
Timeline:
November 1, 2022: iRhythm revised guidance due to Zio AT utilization and lowered its growth forecast from 40% to 20%.
November 4, 2022: iRhythm disclosed a Customer Advisory Notice following FDA inspection issues and sought to reassure investors about Zio AT.
May 4, 2023: iRhythm disclosed that it had received a subpoena from the U.S. Department of Justice.
February 6, 2024: A securities class action was filed against iRhythm in the Northern District of California.
June 3, 2026: The parties entered into the settlement stipulation.
Background:
iRhythm makes cardiac-monitoring devices, including the Zio XT and Zio AT. The dispute centers on how the company described Zio AT’s transmission speed, data accuracy, and use for higher-risk patients.
On November 1, 2022, iRhythm cut guidance because Zio AT utilization was weaker than expected. Three days later, after FDA inspection issues, it issued a Customer Advisory Notice but still tried to reassure investors about Zio AT’s growth prospects.
Investors later pointed to a DOJ subpoena disclosed on May 4, 2023 and an FDA warning letter that challenged how Zio AT was marketed. They say iRhythm improperly promoted the device for patients needing real-time cardiac monitoring, even though regulators later challenged that use.
The market reaction was sharp. According to the text provided, $IRTC fell 6.09% and lost more than $227 million in market value on the warning-letter news, and the case has now moved to a proposed $45 million settlement.
What Can Investors Expect Now?
iRhythm Technologies, Inc. has agreed to a proposed $45 million settlement to resolve investor claims tied to statements about Zio AT’s data transmission, use in high-risk patients, and the accuracy of the data reported by the device.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
If you purchased or acquired the common stock of iRhythm Technologies during the period from July 25, 2022, through August 9, 2024, inclusive, and were allegedly damaged
thereby
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.