1. Hagens Berman announces class action lawsuit against Inspire Medical (INSP). 2. The lawsuit claims INSP misled investors about operational readiness for Inspire V. 3. Allegations include software failures and inventory issues causing substantial losses. 4. Stock value declined by 32.4% after guidance cut due to launch failures. 5. Investors can contact lawyers by January 5, 2026, for potential claims.
FAQ
Why Very Bearish?
The lawsuit highlights severe management failures, similar to past corporate scandals that resulted in significant stock drops, indicating a high likelihood of negative price impact.
How important is it?
The lawsuit addresses substantial operational failures and investor miscommunication, which can severely dampen investor confidence.
Why Short Term?
Litigation and public sentiment can quickly affect stock prices; immediate impact expected as the lawsuit unfolds.
Inspire Medical (INSP) Faces Class Action Lawsuit Amid Stock Plunge
In a significant turn of events, Inspire Medical Systems, Inc. (NYSE: INSP) is grappling with a pending class action lawsuit following a steep decline in its stock value. The national law firm Hagens Berman has reached out to investors who experienced losses to take action before the January 5, 2026, lead plaintiff deadline. The lawsuit, currently underway in the U.S. District Court for the District of Minnesota, accuses Inspire Medical of misrepresenting key operational failures tied to the launch of its new device, Inspire V, designed for patients with obstructive sleep apnea.
Details of the Allegations Against Inspire Medical (INSP)
The class action suit alleges that Inspire Medical misled investors about its operational readiness for the Inspire V launch, indicating it was poised to implement a full commercial rollout. However, these claims masked significant operational challenges that ultimately led to a drastic cut in financial guidance and a subsequent market crash.
Key issues highlighted in the allegations include:
- Medicare & Billing Readiness: Essential software updates were delayed until July 1, 2025, preventing implanting centers from billing for procedures, which stalled early adoption.
- Excess Inventory: Significant stockpiles of the older Inspire IV device hampered demand for the new Inspire V, necessitating an inventory clearance.
- Training & Onboarding: Numerous centers had not completed the crucial training and onboarding required for the new device's implantation.
Due to these operational failures, Inspire Medical was forced to reduce its 2025 earnings per share guidance by more than 80%, resulting in a startling $42.04 drop per share and a 32.4% decline in market value.
The Impact on Investors and Legal Options
According to Hagens Berman, the legal investigations are centered on the critical issues of Medicare claims processing and the inventory surplus related to the Inspire IV device. Reed Kathrein, the partner leading the investigation, emphasized that the alleged manipulation of information regarding the Inspire V launch contributed to the stock's disastrous performance.
If you purchased Inspire Medical (INSP) securities between August 6, 2024, and August 4, 2025, you might be entitled to join this class action lawsuit. Investors are encouraged to contact Hagens Berman to discuss their legal rights and potential options for recourse.
Contact Information:
- Website: www.hbsslaw.com/investor-fraud/insp
- Email: INSP@hbsslaw.com
- Phone: 844-916-0895
Whistleblower Opportunities and Support
Individuals possessing non-public information related to Inspire Medical are encouraged to consider whistleblower options. Under the SEC Whistleblower program, informants can receive rewards of up to 30% of any successful recovery initiated by the SEC. For more details, individuals can contact Reed Kathrein at the number listed above.
About Hagens Berman
Hagens Berman is a leading global plaintiffs’ rights law firm focused on holding corporations accountable for negligence and wrongdoing. The firm has successfully represented numerous investors, recouping over $2.9 billion in claims related to corporate malfeasance. Additional information about the firm and its services is available at hbsslaw.com.