Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Inspire Medical Systems, Inc. (“Inspire Medical” or the “Company”) (NYSE: INSP) in the United States District Court for the District of Minnesota on behalf of all persons and entities who purchased or otherwise acquired Inspire Medical common stock between May 3, 2023 and November 7, 2023, both dates inclusive (the “Class Period”). Investors have until February 20, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Inspire Medical is a medical technology company that develops and commercializes minimally invasive products for patients with obstructive sleep apnea (“OSA”) that require prior authorizations from doctors. In 2022, Inspire Medical introduced a pilot program (the “Acceleration Program”) through which the Company’s Advisor Care Program team, with the customer on the phone, would directly access doctors’ electronic schedules and schedule doctor appointments online, without the need for phone calls. Throughout the Class Period, Defendants touted the Acceleration Program’s effectiveness, claiming that the program had achieved a “30% improvement in physician appointments,” and that by August 2023, “about 60-plus centers are using the tool right now.”
The Class Action alleges that, during the Class Period, Defendants misled investors and/or failed to disclose that: (1) despite the Acceleration Program, customers were encountering challenges with the prior authorization submission process, including with the scheduling of appointments; (2) a slowdown in prior authorization submissions arising from these challenges led to a shortfall of hundreds of procedures to implant the Company’s OSA device; and (3) as a result, Defendants’ positive statements about the Company’s financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
After the close of markets on November 7, 2023, the Company announced disappointing earnings results for the third quarter of 2023, including “a decline in prior authorization submissions for patients seeking Inspire therapy.” Inspire Medical further admitted it had started to “track” problems with the Acceleration Program no later than the second quarter of 2023, the Company “had strong confirmation” of the problems with the Acceleration Program, and the Company “realized we needed to take some corrective action.” In response to this news, shares of Inspire Medical declined approximately 20%, from a closing price of $161.74 per share on November 7, 2023, to a closing price of $129.95 per share on November 8, 2023.
If you purchased or otherwise acquired Inspire Medical shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
