#United States #San Francisco #Securities Fraud #Investor Rights #Inspire Medical

Inspire Medical Systems Faces Securities Fraud Lawsuit

In a troubling development for shareholders, Inspire Medical Systems (NYSE: INSP) is facing a class action lawsuit following a drastic stock drop to $42.04. This significant decline has sparked concerns among investors, prompting Hagens Berman, a national law firm focused on investor rights, to issue a notice urging affected parties to come forward before the impending January 5, 2026, Lead Plaintiff Deadline.

The lawsuit, lodged in the U.S. District Court for the District of Minnesota, centers around claims that the company and its executives misled investors regarding the operational readiness of their new device, the Inspire V, intended for treating obstructive sleep apnea. Assertions made by Inspire Medical indicated a robust deployment phase, with executives confidently stating they were ready to initiate full-scale commercial operations. However, the reality of undisclosed operational failures allegedly impaired the product's launch and subsequent financial success.

The Allegations

According to the class action complaint, several critical failures were concealed from investors, affecting the operational and financial outlook of Inspire Medical:

• - Medicare Billing Readiness: The necessary software upgrades for processing Medicare claims were not implemented until July 2025. This delay prevented implanting centers from billing for procedures, leading to reduced initial adoption rates of the Inspire V device.

• - Excess Inventory (Channel Glut): Existing customers and treatment facilities reportedly held an oversupply of the older Inspire IV device, thus diminishing demand for the newer model, the Inspire V. This excess inventory significantly hindered revenue prospects in its launch phase.

• - Training and Onboarding: Many treatment centers failed to complete the vital training and onboarding necessary for effectively deploying the new device. This lack of preparedness impeded the rollout’s success and contributed to the company's stock plummeting.

The failure to transparently address these operational hurdles led to a catastrophic cut in revenue guidance and a subsequent 32.4% decline in the company’s stock value.

Investigative Actions

Hagens Berman is actively investigating these claims, notably focusing on the alleged failures related to Medicare billing issues and the surplus inventory of the prior model. Reed Kathrein, leading the investigation at Hagens Berman, emphasizes the severity of the concealment efforts that may have misled investors and prioritized a narrative of smooth transition over the actual challenges faced.

Your Options

For anyone who acquired Inspire Medical (INSP) securities between August 6, 2024, and August 4, 2025, there are potential legal avenues available. Individuals experiencing significant losses related to their investments are encouraged to contact Hagens Berman to discuss their rights and options.

If you possess information that could assist in the investigation or wish to understand further about this situation, reach out to Hagens Berman via their website or by phone.

Moreover, there are opportunities for whistleblowers to share non-public information related to Inspire Medical, potentially leading to financial rewards under the SEC Whistleblower Program, which offers up to 30% of any successful recovery by the SEC.

About Hagens Berman

Hagens Berman is a renowned plaintiffs' rights law firm committed to holding corporations accountable. With a strong record of achieving more than $2.9 billion in settlements for investors and others wronged, the firm is poised to assist individuals navigating this legal landscape following the Inspire Medical situation. For continuous updates and insights, follow them under @ClassActionLaw.