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Robbins LLP Files Class Action Against Inspire Medical Systems, Inc.

In a recent development that has sent shockwaves through the investment community, Robbins LLP has formally announced the filing of a class action lawsuit targeting Inspire Medical Systems, Inc. (NYSE: INSP). This legal action is on behalf of all investors who purchased or otherwise acquired the company’s common stock between August 6, 2024, and August 4, 2025. This lawsuit arises from a series of alleged misrepresentations made by Inspire regarding its leading product, the Inspire V device, which is intended for the treatment of obstructive sleep apnea.

Background of Inspire Medical Systems, Inc.

Inspire Medical is recognized as a pioneer in the field of medical technology, specializing in developing innovative solutions for sleep-related issues. The company’s flagship product, the Inspire V device, revolutionized the sleep apnea treatment landscape by providing an implantable solution designed to enhance respiration during sleep. Inspire touted the device as a breakthrough that could significantly elevate its market position.

However, as the lawsuit suggests, the rollout of Inspire V has not gone as planned. Investors were led to believe that the product was successfully launched and that the company had taken all necessary precautions to ensure its success. This, unfortunately, is where the heart of the issue lies.

Allegations Against Inspire Medical

The crux of the allegations focuses on claims that Inspire misled its shareholders regarding the operational readiness and market demand for the Inspire V device. According to the complaint, the launch of Inspire V faced numerous unforeseen challenges. Reports indicate that despite prior assurances from company executives about a smooth transition and sufficient preparations, the reality was starkly different.

The complaint reveals that Inspire failed to establish essential training protocols for its treatment center customers. Furthermore, key Information Technology systems, which were necessary for efficient operation and customer approval processes, were not in place at launch. Critics allege that Inspire also neglected to ensure seamless coordination with insurance companies critical for claims processing, an oversight that could jeopardize revenue streams.

Perhaps most damaging was the revelation that Medicare reimbursement had not been finalized before the device’s launch, a significant blunder that left many treatment centers unprepared and unwilling to adopt the new technology.

The Impact on Investors

On August 4, 2025, investors received shocking news when Inspire admitted that the launch of Inspire V would encounter significant delays due to previously undisclosed difficulties. This announcement triggered an immediate fallout: the company adjusted its earnings guidance for the year by more than 80%, expecting earnings per share to plummet from the anticipated range of $2.20 to $2.30 down to between $0.40 and $0.50. Following this news, Inspire’s stock price plummeted by an astounding 32%, erasing over $1.2 billion in market capitalization within a single trading session.

The stock had reached a high of $216.71 per share just a few months prior, in September 2024, only to crash to about $87.91—all of which eroded substantial shareholder value and raised critical questions about the integrity and transparency of Inspire Medical’s leadership.

What This Means for Shareholders

Investors embroiled in this situation now have the opportunity to participate in the class action lawsuit. Shareholders interested in taking a more active role can apply to serve as the lead plaintiff, with a deadline set for January 5, 2026. The role of the lead plaintiff is to represent the interests of the rest of the class members in guiding the litigation. However, participation in the lawsuit is not a prerequisite for recovery—investors may still be entitled to compensation even if they choose not to engage in the legal proceedings.

Robbins LLP emphasizes that their representation operates on a contingency fee basis, meaning shareholders will not incur any out-of-pocket fees or expenses unless the firm successfully obtains a settlement or judgement in their favor.

Conclusion

As the legal battles unfold, Robbins LLP continues its commitment to protecting shareholders' rights and seeking justice for those affected by corporate misconduct. For additional information or to participate in the class action, shareholders are encouraged to reach out directly to Robbins LLP.

Inspire Medical’s journey is a stark reminder of the inherent risks in investing, especially when products are touted as innovations without the verification of their market readiness.