#USA #San Francisco #Hagens Berman #Inspire Medical #Inspire V

Inspire Medical Faces Major Stock Plunge

In a shocking market development, Inspire Medical Systems, Inc. (NYSE: INSP) has experienced a dramatic decline in its stock price, plunging more than 32%. This downturn is primarily attributed to the disappointing launch of their new device, Inspire V, which has turned out to be fraught with issues that were allegedly concealed from investors. The shares fell significantly after the company announced an unexpected and substantial cut in its earnings per share (EPS) guidance by over 80%, which raised red flags about the company's operational readiness and transparency.

Lawsuit and Allegations

The national shareholder rights law firm, Hagens Berman, has begun investigating the circumstances surrounding this sudden decline and is encouraging investors who have suffered financial losses to seek legal counsel. According to the law firm, the deadline for investors to file for the lead plaintiff position in a securities class action lawsuit is January 5, 2026. The lawsuit alleges that Inspire Medical and its executives provided misleading assurances to investors regarding the Inspire V device's launch, claiming that they were “ready to throw the switch” while concealing significant operational failures.

The details of the lawsuit highlight the alleged disconnect between management's public statements and the realities on the ground. Notable issues include problems with billing software and customer training, which severely hampered the rollout of Inspire V. As a result, many investors feel misled and are looking for recourse under securities law.

Key Issues Disclosed

The law firm outlines several crucial allegations:
1. Billing and Reimbursement Mismanagement: Inspire Medical reportedly claimed that their billing policies were updated and streamlined for timely payments. However, it was later revealed that software updates necessary for Medicare claims were not enacted until mid-2025, leading to delayed reimbursements and stalled adoption of the Inspire V device.
2. Surplus Inventory Concealment: Allegations also indicate that management failed to disclose a significant surplus of older Inspire IV devices, which could have dampened demand for the new Inspire V product, further corroborating claims of misleading information to shareholders.
3. Financial Impact: As the company admitted to extended timelines for product rollout and slashed its financial outlook, shares plummeted from $42.04 per share. This significant stock drop caught the attention of investor advocates, who are now pushing for accountability.

Next Steps for Investors

Investors who purchased Inspire Medical shares during the relevant period—August 6, 2024, to August 4, 2025—are advised to contact Hagens Berman to discuss their options and any potential claims. The law firm emphasizes that they have a robust track record, successfully securing over $325 billion in settlements for clients.

Reed Kathrein, the partner leading the investigation, states: “We are closely examining when executives realized the billing issues and the manipulation of stock prices concerning the older device inventory.” Investors are actively encouraged to understand their rights and seek legal expertise to navigate this turbulent situation.

Conclusion

As these developments unfold, it remains crucial for investors in Inspire Medical to stay informed and consider their legal standing regarding the recent stock declines. The situation highlights the importance of transparency and accountability in corporate governance and the potential pitfalls when such standards are not met. A clear understanding of the ongoing investigations and timely action may provide affected investors with paths to recover losses incurred during this period of significant market volatility.