1. Faruqi & Faruqi is investigating Inspire Medical for securities law violations. 2. Inspire Medical significantly cut its 2025 earnings guidance by over 80%. 3. The rollout of its new device, Inspire V, faces major delays and demand issues. 4. Inspire's stock experienced a 32% drop, erasing $1.2 billion in market capitalization. 5. Investors have until January 5, 2026, to join the federal class action lawsuit.
FAQ
Why Very Bearish?
The significant share price drop reflects severe investor loss of confidence post-announcement, similar to past market reactions seen in companies with delayed product rollouts.
How important is it?
The ongoing litigation and significant stock devaluation indicate a pressing impact on investor sentiment and future valuations.
Why Short Term?
The immediate effects of the stock price drop will likely persist until recovery from legal claims or operational improvements are seen.
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SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Inspire Medical Systems (NYSE: INSP)
Faruqi & Faruqi, LLP, a prominent national securities law firm, has initiated an investigation into potential claims against Inspire Medical Systems, Inc. (NYSE: INSP). The inquiry concerns allegations that the company and its executives violated federal securities laws, specifically through misleading statements regarding the launch and market demand of the Inspire V device. Investors who acquired securities between August 6, 2024, and August 4, 2025, are encouraged to consider their legal options before the upcoming January 5, 2026, deadline for lead plaintiff applications in a related federal class action.
Details of the Allegations Against Inspire Medical
The complaint against Inspire Medical outlines serious claims regarding misleading statements made by the company. These statements allegedly included:
- False assertions about the demand for the Inspire V device.
- Failure to disclose challenges regarding the successful launch of the product.
- Omissions of key facts which could have influenced investor decisions.
On August 4, 2025, Inspire Medical publicly disclosed significant delays in the rollout of the Inspire V due to incomplete training and onboarding at many treatment centers. This announcement marked a critical turning point for the company, affecting investor confidence.
Financial Impact and Stock Performance
Following the negative reports from Inspire Medical, the company's stock witnessed a dramatic decline. Specifically, shares plummeted by over **32%** on August 5, 2025, dropping from **$129.95** to **$87.91** per share. This significant downturn led to a loss of approximately **$1.2 billion** in market capitalization, underscoring the severity of the situation faced by investors.
Lead Plaintiff Information and Next Steps
In the context of the ongoing securities class action, the court-appointed lead plaintiff is the individual with the largest financial stake who will represent the class. Investors wishing to serve as lead plaintiffs have the option to contact counsel of their choice or remain absent class members without any adverse effect on their potential recovery.
Faruqi & Faruqi encourages any parties with relevant information regarding Inspire Medical’s actions to reach out, particularly whistleblowers, former employees, and current shareholders.
Contact Information for Interested Investors
For more information regarding the Inspire Medical class action and to discuss options, investors can contact Faruqi & Faruqi partner, James (Josh) Wilson at:
- Phone: **877-247-4292** or **212-983-9330 (Ext. 1310)**
- Website: www.faruqilaw.com/INSP