LegalJun 5, 2026, 07:51 AM
iRhythm Holdings Settles Class Action Lawsuit for $45M
AI Summary
iRhythm Technologies, a wholly owned subsidiary of iRhythm Holdings, Inc., has entered into a binding Settlement Agreement to fully resolve a previously-disclosed putative class action securities litigation. The settlement involves a payment of $45 million, which the company expects will be largely covered by its directors and officers insurance policies. This resolution will lead to the complete dismissal of the action without any admission of fault by the defendants, and the company does not anticipate an impact on its adjusted non-GAAP financial measures.
Key Highlights
- iRhythm Technologies, a subsidiary, entered into a binding Settlement Agreement.
- The agreement resolves a previously-disclosed putative class action securities litigation.
- Settlement payment is $45 million, inclusive of lead plaintiff's attorneys' fees.
- Majority of the settlement payment is expected to be covered by D&O insurance policies.
- The settlement results in complete dismissal with prejudice and release of claims.
- Defendants made no admission of fault, liability, wrongdoing, or damages.
- The Company does not expect the settlement to impact adjusted EBITDA or net income.
- The proposed settlement is subject to court approval.
Price Impact
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