#USA #New York #Faruqi & Faruqi #legal claims #Inspire Medical

Faruqi & Faruqi Initiates Investigation Into Inspire Medical Systems

Faruqi & Faruqi, LLP, a prominent national securities law firm, has commenced an investigation into Inspire Medical Systems, Inc., concerning possible claims on behalf of investors. The focus is on potential securities law violations by the Company pertaining to misrepresentations regarding the market readiness and demand for its new product, Inspire V.

Investors who acquired securities in Inspire Medical between August 6, 2024, and August 4, 2025, are advised to take note of the timeline as a lead plaintiff application deadline approaches. This deadline is set for January 5, 2026, in a federal securities class action that has already been initiated against Inspire Medical. Investors are encouraged to reach out directly to Faruqi & Faruqi's partner, Josh Wilson, for a detailed discussion regarding their legal options and rights.

The investigation springs from recent disclosures that Inspire Medical’s executives allegedly issued a series of materially false and misleading statements. Public statements suggested robust demand for Inspire V and claimed that the Company had made all necessary preparations for a successful product launch, which has since come under scrutiny. However, on August 4, 2025, the Company revealed significant setbacks in the product rollout, citing extensive training and onboarding needs that treatment centers had not yet fulfilled. These operational delays raised concerns among investors as they hinted at greater issues within the Company's strategic implementation.

Additionally, Inspire Medical faced billing complexities, highlighted by the delayed rollout of a new CPT code that would allow centers to bill for procedures involving Inspire V. Despite Medicare’s approval of the code, essential software updates for processing claims lagged, compelling centers to continue using the previous Inspire IV system. Alongside these logistical challenges, Inspire Medical also reported an alarming drop in demand and excessive inventory for the new device that weighed heavily on its financial forecasts. This combination of factors collectively led to Inspire Medical’s decision to slash its earnings guidance for 2025 by over 80%.

The immediate aftermath of these revelations was a dramatic decline in Inspire’s stock price. Investors witnessed a shocking 32% drop in just one day, with prices plummeting from $129.95 per share on August 4 to $87.91 on August 5, effectively erasing nearly $1.2 billion in market capitalization in a matter of hours.

As the case unfolds, Faruqi & Faruqi is emphasizing the importance of the lead plaintiff role, identifying investors with the most significant financial stake who can adequately represent the class. Any investor wishing to take part in the process may apply to be designated as lead plaintiff through counsel of their choosing or opt to remain an absent class member without affecting their potential recovery.

In addition to current and former shareholders, the law firm invites any whistleblowers or employees with pertinent information about Inspire Medical's practices to share their insights, as they form part of the broader investigation into potential misconduct.

For continued updates, interested parties can follow Faruqi & Faruqi on platforms such as LinkedIn and X, or visit their official website for more information regarding the ongoing investigation. This situation underscores the necessity for companies to maintain transparency and uphold their commitments to stakeholders, as investors are increasingly vigilant about corporate accountability.

In conclusion, the developments surrounding Inspire Medical Systems serve as a critical reminder of the potential risks involved in securities investment and the pivotal role that law firms like Faruqi & Faruqi play in protecting investor rights.