#Class Action #San Francisco #Inspire Medical #Inspire V

Inspire Medical Systems Faces Class Action Lawsuit

In a significant turn of events, Inspire Medical Systems, Inc. (NYSE: INSP), known for its innovative medical devices aimed at treating obstructive sleep apnea, is now facing a class action lawsuit. This legal action comes on the heels of a dramatic decline in its stock price, attributed to allegations that the company misled investors regarding the launch of its much-anticipated Inspire V device.

Background of the Lawsuit

The lawsuit, filed by the City of Pontiac Reestablished General Employees' Retirement System against Inspire Medical and several top executives, underscores a tumultuous period experienced by the company. The class action specifically targets shareholders who acquired Inspire stock during the period from August 6, 2024, to August 4, 2025. Allegations are steep, suggesting that the company violated the Securities Exchange Act of 1934 by providing misleading statements regarding the product launch.

According to Hagens Berman, the law firm representing the plaintiffs, the transition to the Inspire V device was portrayed as smooth and promising by Inspire's management. However, the reality was starkly different, leading to a tumultuous introduction of the new device.

Key Allegations

The crux of the lawsuit revolves around several critical failures that management allegedly obscured from investors:

• - Poor Market Demand: A central claim indicates that the Inspire V launch was marred by insufficient market demand. Many health care providers reportedly retained surplus inventory of the previous device, which made them hesitant to adopt the new version.
• - Incomplete Operational Readiness: Contrary to past assurances, the complaint asserts that Inspire Medical did not complete necessary preparations required for a successful launch.
• - Billing Complications: Perhaps one of the most damaging aspects of the complaint is the lack of adequate logistical planning. Numerous implanting centers were not equipped to complete vital training and contractual obligations prior to conducting procedures with the Inspire V. Furthermore, despite the approval of a CPT billing code for Medicare patients, necessary software updates for claims processing did not become effective until July 1, 2025, hindering early adoption.

Market Reaction and Stock Impact

The situation escalated significantly on August 4, 2025, when Inspire Medical disclosed that the launch of the Inspire V was experiencing an