New York & New Orleans — The law firm Kahn Swick & Foti, LLC (KSF) announced it is continuing its investigation into iRhythm Technologies, Inc. (Nasdaq: IRTC), focusing on potential misconduct by company officers and directors. The probe is being led by Charles C. Foti, Jr., a former Louisiana Attorney General and partner at KSF.
The investigation stems from a May 2023 disclosure by iRhythm, which revealed it had received a Warning Letter from the U.S. Food and Drug Administration. The letter cited multiple regulatory violations related to the company’s Zio AT System, including failures in medical device reporting and deficiencies in quality control. It also raised concerns about the marketing of the device, particularly related to potential undisclosed risks in the detection and transmission of arrhythmia events.
Following this disclosure, iRhythm and several of its executives became the target of a securities class action lawsuit, alleging they failed to disclose material risks during the relevant period, in violation of federal securities laws. A federal judge has since allowed key claims in the lawsuit to move forward by partially denying the company’s motion to dismiss.
KSF’s investigation is centered on whether iRhythm’s leadership violated fiduciary duties or broke state or federal laws in connection with the FDA findings and the alleged failure to inform shareholders.
iRhythm Technologies is a digital healthcare company specializing in wearable cardiac monitoring solutions.
