#United States #San Francisco #Hagens Berman #Inspire Medical #Inspire V

Inspire Medical Stock Crash: A Deep Dive into 'Inspire V' Controversy

In the competitive realm of medical technology, Inspire Medical, listed as INSP on the NYSE, has experienced a seismic shift. Recent revelations regarding the launch of the 'Inspire V' device have not only sparked outrage among investors but have led to significant financial repercussions. The company’s stock has plummeted over 32%, raising alarms and prompting action from both investors and legal experts.

The Allegations

The primary allegations stem from claims made about the operational readiness of the Inspire V device. Investors were assured by the management that the company was well-prepared for the launch, which was considered vital for its growth trajectory. However, internal communications suggest otherwise. Allegations have been made against Inspire Medical’s executives, stating that they misled stakeholders by downplaying critical issues related to billing software and training that compromised the launch.

These issues resulted in a staggering 80% cut to the company's earnings per share (EPS) guidance, devastating investor confidence. This drastic measure has been interpreted as a clear indicator of operational failures that were not disclosed to the market.

The Role of Hagens Berman

Amidst this turmoil, the prominent shareholder rights law firm Hagens Berman has stepped in, urging affected investors to consider filing a claim as lead plaintiff in a securities class action lawsuit. Investors who faced significant losses due to the alleged failures between August 6, 2024, and August 4, 2025, are being encouraged to act swiftly, as the deadline for participating in this legal move is set for January 5, 2026.

Hagens Berman partner Reed Kathrein emphasized, “Our investigation centers on the purported disconnect between management's claims of being 'ready to throw the switch' for the Inspire V launch and the alleged undisclosed operational reality.” He added that it is crucial to scrutinize when top executives became aware of the failures in software updates responsible for handling Medicare claims.

Key Legal Issues

The lawsuit highlights several key areas of concern. Firstly, it points out the alleged misrepresentation around the billing and reimbursement processes. Management reportedly claimed that these processes were updated for prompt payment, failing to disclose that changes in the software dealing with Medicare did not take effect until July 2025. This lapse prevented centers from billing for procedures, stalling adoption of the Inspire V device.

Additionally, the complaint raises questions about undisclosed sales practices. Reports suggest that customers had substantial inventory of the previous Inspire IV device, which created a barrier for the new product's adoption. The firm argues that Inspire should have proactively disclosed these inventory challenges to investors.

The Financial Fallout

On August 4, 2025, when the company admitted to an 'elongated timeframe' for the Inspire V rollout and slashed the 2025 EPS forecast by over 80%, the stock nosedived dramatically. Investors lost approximately $42.04 per share, reflecting a severe loss of trust in the company’s management.

As stated in the lawsuit, this crash raises critical questions about whether investors are entitled to damages resulting from these actions, effectively framing the basis of Hagens Berman's legal approach.

A Call to Investors

In light of these developments, Hagens Berman is actively encouraging all investors who experienced losses linked to the Inspire Medical shares during the relevant class period to come forward. The firm has established a secure form for filing claims, ensuring that those impacted can seek the restitution they deserve.

Reed Kathrein can be reached at 844-916-0895 for investors seeking guidance on navigating this situation or understanding their rights as shareholders.

Conclusion

The situation surrounding Inspire Medical serves as a reminder of the volatility inherent in the medical technology sector. As litigation unfolds, stakeholders must remain vigilant and informed about their rights and options. Hagens Berman continues to position itself as a strong advocate for investors, committed to holding corporations accountable for their actions.

For those interested in staying updated on this case and similar matters, following Hagens Berman’s progress can provide insight into future developments in investor rights and corporate governance.