#United States #San Francisco #Securities Fraud #Hagens Berman #Inspire Medical

Inspire Medical Systems Faces Legal Challenges After Major Stock Drop

Inspire Medical Systems, Inc. (NYSE: INSP) has recently found itself at the center of controversy following a significant decline in stock price, dropping to $42.04. This decline has triggered a class action lawsuit against the company, spearheaded by the national investor rights law firm Hagens Berman. The firm is advocating for investors who faced considerable losses due to alleged misleading practices by Inspire Medical's management regarding its latest product, the Inspire V, which is designed for obstructive sleep apnea treatment.

The Allegations

The crux of the lawsuit revolves around claims that Inspire Medical grossly misrepresented its operational readiness ahead of the Inspire V launch. The executives reportedly assured investors that everything was set for a full commercial rollout, only to later reveal that serious operational issues had been concealed. This miscommunication ultimately led to a significant drop in stock value and drastic adjustments in earnings projections.

Key points of concern raised in the complaint include:

• - Medicare Billing Issues: The necessary software updates for processing Medicare claims were not implemented until July 1, 2025. Consequently, many implanting centers were unable to bill for procedures, stalling the initial adoption of the Inspire V device.
• - Excess Inventory of Previous Devices: The transition to the Inspire V was further complicated by a substantial surplus of the previous model, the Inspire IV, leading to a bottleneck in demand for the new product. This channel glut significantly impacted Inspire's operations and revenue.
• - Inadequate Training and Onboarding: Reports suggest that many treatment centers had not completed the required training and contracting necessary to implant the Inspire V device, further delaying the product's market introduction.

These factors culminated in the company slashing its Earnings Per Share (EPS) guidance by over 80%, a move that spurred the stock's dramatic fall.

Investor Action Required

Hagens Berman is currently urging investors who suffered losses from Inspire Medical's stock drop to reach out before the January 5, 2026 deadline for filing as lead plaintiffs. The firm’s partner, Reed Kathrein, emphasized that the lawsuit highlights the concealment of critical issues that led directly to significant investor losses. Hagens Berman has a track record of successful class action suits, making it a formidable ally for affected investors.

For investors impacted or who have relevant information, contact Hagens Berman at 844-916-0895 or visit their dedicated case page. Whistleblowers with non-public information about Inspire Medical are also encouraged to come forward, as they may benefit from the SEC's Whistleblower program, which provides financial incentives for such disclosures.

Conclusion

Inspire Medical Systems' ongoing legal battles reflect deeper issues regarding transparency and accountability in corporate practices. The fallout from the stock drop and the ensuing lawsuit underscore the importance for investors to stay informed about the companies in which they invest. As the case progresses, it remains crucial for affected shareholders to consider their options and participate in the legal process to protect their investments.

For further updates on this developing story and legal insights, keep an eye on Hagens Berman's channels as they advocate for investor rights within this pressing situation.