Inspire Medical (INSP) Faces Securities Class Action Over Claims It Misled Investors on Next-Generation Device Launch -- Hagens Berman

SAN FRANCISCO, Nov. 28, 2025 /PRNewswire/ -- Medical device manufacturer Inspire Medical Systems, Inc. (NYSE: INSP) is the subject of a securities class action lawsuit following a sharp decline in its stock price, with shareholders alleging the company misled investors about the launch of its latest product, the Inspire V device for obstructive sleep apnea.

Hagens Berman is investigating the allegations. The firm urges investors in Inspire who suffered significant losses to submit your losses now.

Class Period: Aug. 6, 2024 – Aug. 4, 2025
Lead Plaintiff Deadline: Jan. 5, 2026
Visit: www.hbsslaw.com/investor-fraud/insp
Contact the Firm Now: [email protected]
                                       844-916-0895

Inspire Medical Systems, Inc. (INSP) Securities Class Action:

The complaint, captioned City of Pontiac Reestablished General Employees' Retirement System v. Inspire Medical Systems, Inc., No. 25-cv-04247 (D. Minn.), targets Inspire Medical and several of its top executives. It seeks to represent investors who purchased or acquired the company's common stock between August 6, 2024, and August 4, 2025 (the "Class Period"), charging violations of the Securities Exchange Act of 1934.

The Heart of the Complaint: Inspire V's Alleged Failures

Inspire Medical, known for its implantable neurostimulation technology designed to improve respiration during sleep, allegedly assured the market that the transition to its newer Inspire V device would be seamless and successful.

However, the lawsuit paints a significantly different picture, alleging that the defendants made false and/or misleading statements and failed to disclose critical operational failings that ultimately sabotaged the launch:

• Poor Demand and Inventory Surplus: A core allegation is that the Inspire V launch was a disaster due to poor market demand. The complaint asserts that providers already held significant surplus inventory of the previous device and were reluctant to transition to the new version.
• Incomplete Readiness: Contrary to management's assurances, the lawsuit contends that Inspire Medical failed to complete essential, basic tasks required for a successful rollout.
• Billing and Operational Hiccups: The complaint details several specific, undisclosed logistical roadblocks. Specifically, many implanting centers failed to complete the necessary training, contracting, and onboarding criteria prior to purchasing and implanting Inspire V. Crucially, despite the CPT code for Medicare patients being approved, the necessary software updates for claims submissions and processing did not take effect until July 1 of 2025. This delay, which was not previously disclosed, meant centers could not bill for procedures until that date, severely restricting early adoption.

The Market Reaction

The alleged scheme purportedly unraveled on August 4, 2025, when Inspire Medical publicly admitted that the Inspire V launch was facing an "elongated timeframe" due to a number of previously undisclosed headwinds.

In the wake of these revelations, the company was forced to dramatically reduce its 2025 earnings guidance by more than 80%. The news sent shockwaves through the market, causing the price of Inspire Medical's common stock to decline by over 32% on heavy trading volume, triggering the investor class action.

The lawsuit contends that management's assurances—that all steps had been taken for a successful launch and that the rollout was proceeding smoothly—were fundamentally disconnected from the operational reality, leaving investors exposed to a massive financial loss.

Hagens Berman's Investigation

Prominent investor rights law firm Hagens Berman is investigating the alleged claims against the company. The firm is focusing on potential misstatements or omissions related to the launch of the Inspire V device and its impact on the company's financial standing.

"Our investigation is focused on whether Inspire's management knew of the alleged critical operational flaws—like the billing code delays and training shortfalls—before the August 4th disclosure," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.

If you invested in Inspire and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Inspire case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Inspire should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP