Inspire Medical Systems ($INSP) Misrepresented Readiness for Inspire V Launch and Revenue Outlook Case

S.D. New York

Court

1:25-cv-10620

Case number

08/06/2024

Class period Start

08/04/2025

Class period End

02/20/2026

Lead Plaintiff motion deadline

$INSP investors filed a claim against Inspire Medical Systems for allegedly misrepresenting the company’s readiness to launch its new Inspire V system and the financial outlook tied to that launch.
After announcing it was “ready” for a full-scale rollout, Inspire later revealed significant challenges with onboarding treatment centers, reimbursement issues, and weak demand—causing shares to drop 32.4% on August 5, 2025.
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Case Details:

Between August 6, 2024, and August 4, 2025, Inspire Medical Systems repeatedly told investors that it was fully prepared to launch Inspire V—its next-generation device for treating obstructive sleep apnea. Executives stated they had completed physician training, built inventory, and secured necessary insurance reimbursement approvals, and they issued strong revenue guidance on that basis.

Internally, however, the company was experiencing major delays. Many treatment centers had not completed training or installed required software (SleepSync), and new billing codes for Medicare patients were not ready for use until months after the company’s projected launch date. Inspire also struggled with lower-than-expected demand, partly due to provider inventory surpluses and disincentives from reduced physician payments.

On August 4, 2025, Inspire cut its full-year earnings per share forecast by more than 80%, citing rollout headwinds and slower-than-expected adoption of Inspire V. The next day, $INSP shares fell 32.4%, closing at $87.91—down from $129.95—wiping out hundreds of millions in market value.

Based on these events, $INSP investors filed a claim against Inspire, alleging the company:
It overstated its readiness for the Inspire V rollout and misled investors about launch progress.
It failed to disclose significant training, IT, and billing challenges that delayed adoption.
It provided earnings guidance that did not reflect known risks to Inspire V deployment.
Investors argue Inspire misled the market about its operational readiness and revenue trajectory, leading to steep losses when the truth was revealed.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Appointment

Alleged Offence

Misleading Statements,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08/04/2025

Filing date

12/22/2025

Lead Plaintiff Deadline

02/20/2026

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