Securities Lawsuit Targets Inspire Medical Over Device Launch Failures

Hagens Berman Sobol Shapiro LLP has initiated a securities class action lawsuit against Inspire Medical Systems, Inc. (NYSE: INSP), alleging that the company and its executives misled investors regarding operational challenges during the launch of its next-generation device, the Inspire V for obstructive sleep apnea. The lawsuit covers investors who purchased INSP securities between August 6, 2024, and August 4, 2025, with a lead plaintiff deadline of January 5, 2026. The complaint claims that Inspire Medical assured strong operational readiness for the Inspire V launch but concealed significant issues that disrupted the product rollout and severely impacted revenue and stock value. Key alleged concealed issues include Medicare billing software updates that were not operational until July 1, 2025, causing implanting centers to face billing delays and slowing early adoption of the Inspire V device. Additionally, there was a surplus inventory of the previous Inspire IV model among customers and treatment centers, which needed to be depleted before the new device could gain traction. The training and onboarding process for many centers to implant the Inspire V had also not been completed, further compounding rollout difficulties. The operational setbacks led Inspire Medical to reduce its 2025 earnings per share (EPS) guidance by over 80%, resulting in a sharp stock price drop of $42.04 per share, representing a 32.4% decline. Hagens Berman emphasizes that the company prioritized a narrative of seamless operational transition, which investors allege was misleading and contributed to the substantial stock collapse. The case is currently pending in the U.S. District Court for the District of Minnesota, and investors affected during the specified class period are encouraged to consult with legal counsel regarding their rights. Additionally, whistleblowers with non-public information related to this case may have opportunities under the SEC Whistleblower program to provide information and receive potential financial rewards. This lawsuit highlights important regulatory and compliance risks in medical device commercialization related to Medicare billing readiness, inventory management, and training protocols, with direct implications for investor confidence and market valuation within the healthcare technology sector.