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Inspire Medical Systems Faces Securities Fraud Lawsuit

In a shocking turn of events, Inspire Medical Systems, Inc. (NYSE: INSP) has triggered significant legal challenges following a dramatic drop in its stock price. Investors are now facing the prospect of a securities class action lawsuit led by Hagens Berman, a national investor rights law firm.

Background on the Stock Drop

On December 11, 2025, Hagens Berman announced that they were alerting investors to a lawsuit which is currently pending in the U.S. District Court for the District of Minnesota. The lawsuit stems from allegations of operational failures tied to the launch of Inspire's next-generation device, the Inspire V, designed for treating obstructive sleep apnea. During the class period, investors who acquired securities from August 6, 2024, to August 4, 2025, are being called to action. The lead plaintiff deadline is set for January 5, 2026.

Allegations of Misleading Investors

The heart of the lawsuit revolves around claims that Inspire Medical and its executives misled investors about the company’s operational readiness ahead of the Inspire V launch. According to the allegations, they falsely claimed a complete preparation for a smooth rollout, all the while suppressing information about significant operational gaps — an act the lawsuit argues has materially misled investors.

Critical Failures Laid Bare

The lawsuit sheds light on several undisclosed operational issues that have been described as critical:
1. Medicare Billing Issues: It is alleged that the necessary software updates for processing Medicare claims were only implemented on July 1, 2025. This delay meant that implanting centers were unable to bill for the procedures, severely hindered the adoption of the new device, and ultimately sapped potential revenue.
2. Inventory Glut: A notable overabundance of older Inspire IV devices at treatment centers drastically affected demand for the new Inspire V. The company now finds itself facing an inventory burn-down scenario, further exacerbating its trickling revenue streams.
3. Training Gaps: Many implanting centers did not complete the essential training and onboarding needed for the new device, which contributed to the hurdles of launching Inspire V.

As a result of these factors, Inspire's stock price plummeted, resulting in a $42.04 per share drop and a staggering 32.4% decline in overall value.

Hagens Berman’s Investigation

Reed Kathrein, a partner at Hagens Berman, commented on the allegations stating, "Our focus remains on the alleged concealment of critical points, especially regarding the Medicare claims software failure and the inventory surplus of the prior device model." He implies that the emphasis by Inspire's management on a seamless narrative overshadowed the operational realities that led to the stock's catastrophic fall.

What Investors Can Do

For investors who suffered significant losses due to their investments in Inspire Medical (INSP), there are options available. Those interested in discussing their legal rights or who might possess information to aid in the investigation are encouraged to reach out to Hagens Berman.

Contact Information:

• - Phone: 844-916-0895
• - Email: email protected]
• - Visit: [Hagens Berman Official Site

Final Thoughts

With the repercussions of the lawsuit poised to unfold, investors are urged to remain vigilant and proactive in understanding their rights amidst these tumultuous financial landscapes. Whistleblowers with non-public information about Inspire Medical's operational failures could also consider leveraging the SEC Whistleblower program for potential rewards.

As the situation develops, investors and stakeholders alike will be watching closely to see how Inspire Medical navigates this legal storm.