Class Action Filed Over Inspire Medical's Alleged Operational Failures

Hagens Berman, a national investor rights law firm, has initiated a securities class action lawsuit against Inspire Medical Systems, Inc. (NYSE: INSP), alleging that the company misled investors about the operational readiness of its Inspire V device for obstructive sleep apnea. The lawsuit claims that Inspire Medical concealed critical issues related to Medicare billing software delays, excess inventory of the previous Inspire IV device, and incomplete training for implanting centers. These undisclosed problems allegedly led to a significant delay in the Inspire V rollout, resulting in a more than 80% cut in 2025 earnings per share guidance and a 32.4% drop in stock value on August 4, 2025. The class period for investors affected is from August 6, 2024, to August 4, 2025, with a lead plaintiff deadline of January 5, 2026. The complaint highlights how Inspire's management prioritized a narrative of seamless operational transition while masking operational failures, impacting revenue generation and investor confidence. Key issues include Medicaid billing processing readiness, inventory surplus of older devices, and training bottlenecks at implantation centers. Hagens Berman is seeking investors who suffered substantial losses to contact them for potential legal action and encourages individuals with non-public information to consider whistleblower options under the SEC Whistleblower program. The firm emphasizes its focus on corporate accountability in securities law and represents investors harmed by alleged corporate mismanagement. This case underscores the intersection between medical device operational execution, regulatory compliance involving Medicare billing systems, and the resultant market and stock price impacts. For insurance professionals and investors, the Inspire V device launch challenges illustrate risks of operational execution failures on medical technology companies’ stock performance and financial guidance. Understanding these risks is critical for stakeholders monitoring regulatory and market compliance in the healthcare and insurance sectors.