Inspire Medical's Class Action Lawsuit: Key Details for Investors
Inspire Medical Systems, Inc. (NYSE: INSP) is currently embroiled in a class action lawsuit designed to protect the rights of investors who purchased shares between August 6, 2024, and August 4, 2025. This legal action, initiated by the law firm Johnson Fistel, PLLP, addresses potential violations of federal securities laws. For individuals who suffered significant financial losses during this period, the significance of the lawsuit and the upcoming deadlines cannot be overlooked.
What is the Lawsuit About?
The lawsuit against Inspire Medical alleges that the company and certain high-ranking executives intentionally misled investors. Central to the claims is the launch of the Inspire V device, intended for patients suffering from obstructive sleep apnea. Despite public communication suggesting a successful rollout, the reality was much different. Allegations state that:
- - The demand for the Inspire V device was disappointing, primarily due to healthcare providers holding excessive inventory and reluctance to adopt the new technology.
- - The company had not completed necessary preparations for the device’s rollout, including proper training for implantation centers and establishing vital contracts.
These troubling revelations came to light following an announcement dated August 4, 2025, in which Inspire Medical disclosed that the rollout would take significantly longer than anticipated. The company also admitted that software updates essential for billing Medicare patients were delayed, preventing procedures related to Inspire V from being billed until July 1. As these issues compounded, Inspire Medical was forced to lower its earnings guidance drastically for 2025—by over 80%—triggering a severe stock price drop of more than 32% and inciting major losses for investors.
Investor Rights and Actions
For investors who acquired Inspire Medical shares during the specified class period and faced capital losses, the deadline to apply for lead plaintiff status is January 5, 2026. It is an essential period for affected individuals, emphasizing the need to act promptly to safeguard their interests. Investors who find themselves in this situation should consider reaching out to attorneys for guidance on whether they qualify for participation in a potential recovery.
How to Get Involved
James Baker from Johnson Fistel can be contacted at (619) 814-4471, or via email at [email protected] for private discussions regarding individual circumstances and options. Moreover, Frank J. Johnson, Esq., is also available for consultation at [email protected]
About Johnson Fistel, PLLP
Johnson Fistel, PLLP is a prominent shareholder rights law firm with a broad reach across several states, including California, New York, and Georgia. The firm is widely recognized for representing both individual and institutional investors in securities class actions and shareholder derivative litigation. In their ongoing mission, they have successfully recovered considerable sums for investors impacted by corporate misconduct. In 2024, the firm earned recognition by ISS Securities Class Action Services, securing approximately $90.7 million for investors in various cases where it acted as lead or co-lead counsel.
Final Thoughts
The Inspire Medical class action serves as a crucial reminder for investors to remain vigilant and informed about the health of their investments, particularly in sectors that involve new and evolving technologies. With the January 5 deadline fast approaching, affected investors should take immediate action, either by seeking lead plaintiff status or consulting with legal experts to understand their rights thoroughly. Staying proactive is essential in navigating the complexities of securities law and advocating for one's financial interests in the face of corporate mismanagement.