According to the Complaint, iRhythm Technologies, Inc. is a digital healthcare company that seeks to "redefin[e] the way cardiac arrythmias are clinically diagnosed by combining [the Company's] wearable biosensing technology with cloud-based data analytics and deep-learning capabilities." iRhythm offers a portfolio of ambulatory cardiac monitoring services on its platform, called the Zio service.

On December 2, 2020, iRhythm issued a press release stating that new Centers for Medicare and Medicaid Services (CMS) physician fee guidelines would change how payments for its Zio XT remote cardiac monitoring services would be calculated. On this news, IRTC shares dropped approximately 20%. Then on January 29, 2021, a Baird research analyst noted that Medicare Administrative Contractor rates affecting heart monitors are "way lower" than those published in the Medicare Physician Fee Schedule. On this news, IRTC shares closed down approximately 33%, wiping out billions of dollars in market capitalization.

The Complaint alleges that during the Class Period, Defendants made public misrepresentations or failed to disclose material facts, and that as a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of iRhythm's common stock, Plaintiff and other members of the Class suffered significant losses and damages.