iRhythm Officers Accused of Concealing Heart Monitor Issues (1)

Several iRhythm Technologies Inc. executives allegedly concealed flaws with its heart monitor that left the medical device company exposed to massive liability and degraded its reputation.

iRhythm officers concealed issues with the Zio AT despite receiving thousands of complaints dating back to 2019, warnings from the US Food and Drug Administration, and knowledge that two patients died while wearing the device, according to a shareholder derivative complaint filed in Delaware Chancery Court.

The Zio AT was a “key driver of the Company’s growth narrative and valuation in the public markets” as iRhythm made representations about the “transformative” technology. The company’s ...