Faruqi & Faruqi Notifies Inspire Medical Investors of Class Action Lawsuit Deadline

Class Action Lawsuit Against Inspire Medical Systems: An Urgent Reminder

Inspire Medical Systems, Inc. (NYSE: INSP) is currently facing significant legal scrutiny as a federal securities class action has been filed against the company. Faruqi & Faruqi, LLP, a prominent national securities law firm, has alerted investors about the impending deadline for serving as lead plaintiff in this lawsuit, set for January 5, 2026. Investors who purchased or acquired securities in Inspire Medical between August 6, 2024, and August 4, 2025, are particularly encouraged to review their legal options regarding this matter.

Understanding the Allegations

The crux of the class action lawsuit revolves around allegations that Inspire Medical, along with its executives, breached federal securities laws. The complaint asserts that false and misleading statements were made regarding the company's innovative Inspire V device. Investors were led to believe that market demand for this new product was robust and that the necessary steps for a successful launch had been adequately addressed.

However, on August 4, 2025, Inspire Medical disclosed severe setbacks that contradicted these earlier claims. It revealed that the launch of Inspire V was considerably delayed due to multiple factors. Many treatment centers had not completed essential training and onboarding processes, which are prerequisites for using the device. Furthermore, Inspire Medical faced billing and reimbursement complications, as the necessary software updates for processing claims were not scheduled to take effect until July 1, 2025. Consequently, centers continued to utilize the previous Inspire IV system, compounding the challenges of a timely launch.

The company also reported a disappointing demand for Inspire V and excess inventory, which compelled it to drastically reduce its earnings forecasts for 2025 by over 80%. As a direct result of this disclosure, Inspire's stock plummeted more than 32% in a single day, dropping from $129.95 per share to $87.91, effectively erasing approximately $1.2 billion from its market capitalization.

The Role of Lead Plaintiffs

The court is looking to appoint a lead plaintiff, typically an investor who possesses the highest financial stake and reflects the experiences of other class members. These designated leads will oversee the litigation on behalf of all investors involved. Importantly, individuals can apply to serve as lead plaintiff either through their legal counsel or opt to remain passive members of the class. Participation as a lead plaintiff does not influence an investor's eligibility for recovery in the case.

Faruqi & Faruqi is urging potential class members to reach out, especially those with pertinent information regarding Inspire Medical's actions, including former employees, shareholders, and whistleblowers. For any inquiries, investors can directly contact Joshua Wilson, a partner at Faruqi & Faruqi, who is handling this case. He can be reached at 877-247-4292 or 212-983-9330 (Ext. 1310).

Conclusion

The impending class action lawsuit against Inspire Medical Systems represents a critical moment for those affected investors who risked their capital under the premise of false assurances. With the significant drop in stock price following the company's disclosures, there remains hope for recovery through legal avenues. Investors are encouraged to act promptly, as the deadline for asserting lead plaintiff status looms just over a year away.

For updates on this lawsuit and to learn more about participating, visit Faruqi & Faruqi's official website. The legal landscape is incredibly fluid, and staying informed is vital for those interested in pursuing this matter further.