iRhythm Technologies falls after Spruce Point issues short-selling report

iRhythm Holdings

18/08/2025 19:21

** Shares of medtech firm iRhythm Technologies IRTC.O fall 3% to $155.76

** Spruce Point, a short-seller, claims iRhythm's heart device Zio AT had serious flaws that could stop real-time alerts; the FDA cited safety issues, and Spruce Point says at least two deaths were linked in FDA findings

** Newly unsealed court filings indicate the DOJ is investigating whether iRhythm executives hid problems; the government is seeking internal documents about what management knew and when, says Spruce Point

** Spruce Point believes iRhythm's plan to grow by screening asymptomatic patients is unlikely to work and that consumer wearables (e.g., smartwatches) could handle much of this at lower cost

** The short-seller sees multiple growth and financial headwinds and estimates the stock could fall 40%–70%, noting declining revenue quality, regulatory risks and rising competition

** iRhythm did not immediately respond to a Reuters request for comment

** Including session moves, IRTC stock up 72.7% YTD

 (Reporting by Padmanabhan Ananthan)

 ((Padmanabhan.Ananthan@thomsonreuters.com))