iRhythm Fails to Snuff Investor Suit Over Heart Monitor Flaws

IRhythm Technologies Inc. and its CEO Quentin Blackford failed to defeat claims that they misled investors about the company’s Zio AT cardiac monitoring device.

The Oklahoma firefighters’ pension fund that brought the suit plausibly alleged the company’s statements about its device’s accuracy and timely reporting to physicians were false or misleading, Judge Jacqueline Scott Corley of the US District Court for the Northern District of California said in a Tuesday order partially denying iRhythm’s bid to toss the case.

The fund—representing a proposed class of investors who acquired iRhythm stock between Nov. 5, 2021, and Aug. 9, 2024—asserted those statements ...