Inspire Medical Systems, Inc. (NYSE: INSP) is now grappling with a proposed class-action lawsuit alleging the company misled investors about the commercial readiness and demand for its critical “next generation” sleep apnea device, the Inspire V. The litigation zeroes in on the disparity between the company's confident assurances and the subsequent disastrous rollout that led to a dramatic stock crash.

Prominent investor rights law firm Hagens Berman is investigating the alleged claims. 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: INSP@hbsslaw.com, 844-916-0895

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

The case, styled City of Pontiac Reestablished General Employees’ Retirement System v. Inspire Medical Systems, Inc., et al., No. 0:25-cv-04247-PJS-ECW (D. Minn.), seeks to represent investors who purchased or otherwise acquired Inspire common stock between August 6, 2024 and August 4, 2025.

The complaint asserts that throughout the Class Period, Inspire repeatedly assured investors it had met all regulatory, technical, and commercial prerequisites for the Inspire V launch, while also touting high demand and a successful commercial proceeding.

However, the lawsuit claims the reality was starkly different and undisclosed to investors. The complaint alleges the Inspire V launch was, in fact, a disaster, crippled by minimal initial demand. This weak uptake, according to the suit, was due to the company’s customers already being flush with inventory of older, unsold Inspire IV devices. Furthermore, the complaint suggests Inspire had allegedly neglected basic steps necessary to ensure the new device’s swift adoption by clinicians and payors.

Investors allegedly learned the truth on August 4, 2025. That day, Inspire revealed that the Inspire V launch faced an “elongated timeframe” due to previously undisclosed headwinds.

Inspire explained that “many centers did not complete the training, contracting and onboarding criteria required prior to the purchase and implant of Inspire V.”

The company also said that, although Inspire V’s CPT code was approved for Medicare patients, “software updates for claims submissions and processing did not take effect until July 1.” This meant that implanting centers could not bill for those procedures until July 1 and, as a result, many centers opted to continue treating patients with the older generation Inspire IV.

Inspire further explained that demand for Inspire V was plagued by customers’ need to “burn down” Inspire IV inventory, a headwind that would continue to negatively impact demand for Inspire V.

Lastly, as a result the disastrous launch, Inspire slashed its 2025 earnings guidance by a whopping 80% to just $0.40 to $0.50 per share.

The news sent Inspire shares crashing $42.04 the next day, a decline of roughly 32%.

“We’re focused on investors’ losses and whether Inspire may have intentionally misled investors about headwinds adversely affecting the next generation launch and the dramatic negative effect on the company’s earnings potential,” 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 INSP@hbsslaw.com.

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.

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