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Inspire Medical hit with lawsuit after sleep apnea device launch disaster

A next-gen medical device promised breakthroughs—but investors say they were deceived. Now, a class-action lawsuit demands answers after shares collapsed.

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1 min read
In this picture it looks like a pamphlet of a company with an image of a cup on it.
In this picture it looks like a pamphlet of a company with an image of a cup on it.

Inspire Medical hit with lawsuit after sleep apnea device launch disaster

Inspire Medical Systems, Inc. (NYSE: INSP) is facing a proposed class-action lawsuit alleging it misled investors about the commercial readiness and demand for its next-generation sleep apnea device, the Inspire V. The news sent shares crashing by $42.04, a decline of roughly 32% the following day.

The lawsuit, City of Pontiac Reestablished General Employees' Retirement System v. Inspire Medical Systems, Inc., et al., seeks to represent investors who purchased or acquired Inspire common stock between August 6, 2024 and August 4, 2025. It alleges that 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, investors learned the truth on August 4, 2025, when Inspire revealed that the Inspire V launch faced an 'elongated timeframe' due to previously undisclosed headwinds. The lawsuit focuses on the disparity between Inspire's confident assurances and the subsequent disastrous rollout of the Inspire V device, which led to a dramatic stock crash. The reality, according to the lawsuit, was different and undisclosed to investors, with the Inspire V launch crippled by minimal initial demand due to customers already having inventory of older, unsold Inspire IV devices. As a result of the disastrous launch, Inspire slashed its 2025 earnings guidance by 80% to just $0.40 to $0.50 per share.

Hagens Berman, a prominent investor rights law firm, is investigating the alleged claims and urges investors in Inspire who suffered significant losses to submit their losses. The lawsuit seeks to hold Inspire accountable for allegedly misleading investors about the commercial readiness and demand for the Inspire V device.

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