Appeal in iRhythm Stock Suit Fails on Investor’s Litigation Role

iRhythm Technologies Inc. no longer faces an investor’s bid to reinstate a securities suit over its medical device pricing after a divided Ninth Circuit ruled Wednesday that the stockholder lacks standing to appeal.

The three-judge panel of the federal appeals court split on whether Mark Habelt, who filed the proposed class suit but didn’t become lead plaintiff, remained a party to the case. The members of the panel also disagreed as to whether an exception to the general rule against non-party appeals might apply in these circumstances.

Investors said the heart monitor company told them that Medicare reimbursement dollar amounts, ...