#United States #San Francisco #Securities Fraud #Investor Alert #Inspire Medical

Inspire Medical Systems Faces Legal Challenge

Inspire Medical Systems, Inc. (NYSE: INSP) recently found itself at the center of a legal storm as the national law firm Hagens Berman announced a pending securities class-action lawsuit. This legal action is the result of significant operational failures that allegedly resulted in misleading information being conveyed to investors. With the company’s stock plummeting to $42.04 per share, affected investors are being urged to act swiftly before the January 5, 2026, lead plaintiff deadline.

Background of the Lawsuit

The lawsuit, currently filed in the U.S. District Court for the District of Minnesota, highlights that the company and its executives allegedly assured shareholders of their preparedness for the roll-out of a next-generation medical device known as Inspire V, which is designed to treat obstructive sleep apnea. However, the reality, as detailed in the complaint, suggests a different story. It posits that the company concealed critical operational flaws that prevented a successful launch of Inspire V.

Key Issues Raised

Three main areas of concern have been brought to light:
1. Medicare Billing Software Failures: The alleged failure to update critical software for processing Medicare claims meant that many implanting centers were unable to bill for procedures. This delay stymied early adoption of the new device, creating revenue bottlenecks.

2. Excess Inventory of Inspire IV Devices: Allegations have surfaced regarding a significant surplus of the older Inspire IV device among customers and treatment centers, which obstructed the demand for the new Inspire V device and necessitated an inventory reduction strategy.

3. Inadequate Training for Medical Centers: Reports suggest that many medical centers had not completed necessary training needed for implanting the new device, resulting in operational delays.

The combination of these factors led to a catastrophic earnings guidance cut, and ultimately, a dramatic decline in the company’s stock value of 32.4%.

Response from Hagens Berman

Reed Kathrein, a partner at Hagens Berman, expressed, "Our focus remains on the alleged concealment of critical failures – the software failure and the inventory glut – that contravened the narrative touted by Inspire’s management. This suit represents not just loss recovery for the investors but also corporate accountability."

What Investors Should Do

For investors who bought securities of Inspire Medical during the class period from August 6, 2024, to August 4, 2025, there may be legal recourse available. They are encouraged to reach out to Hagens Berman to explore their options. The firm emphasizes the importance of filing any claims prior to the lead plaintiff deadline on January 5, 2026.

Investors can submit their losses online or contact Reed Kathrein directly at Hagens Berman for an initial discussion regarding their legal rights at 844-916-0895 or via email.

Conclusion

The Inspire Medical case exemplifies the legal ramifications companies can face when they fail to maintain transparency with investors. The ongoing lawsuit serves as a stark reminder of the vital importance of operational readiness and honest communication in corporate practices. For those affected, taking prompt action could make a critical difference in recovering losses experienced during this tumultuous period in Inspire Medical’s history.