Grant & Eisenhofer Files Class Action Lawsuit Against Inspire Medical Systems, Inc.

Core Viewpoint - A class action lawsuit has been filed against Inspire Medical Systems, Inc. and its senior executives for allegedly defrauding investors regarding the launch of their new sleep apnea device, Inspire V, by making misleading statements and failing to disclose adverse facts [1][4]. Group 1: Lawsuit Details - The lawsuit is initiated on behalf of the City of Pontiac Reestablished General Employees' Retirement System against Inspire Medical and three senior executives, including CEO Timothy Herbert, CFO Richard Buchholz, and Chief Strategy and Growth Officer Carlton Weatherby [1][2]. - The class period for the lawsuit spans from August 6, 2024, to August 4, 2025, during which the alleged misrepresentations occurred [2]. - The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, focusing on misleading statements about the market demand and launch readiness of Inspire V [4]. Group 2: Product Information - Inspire Medical develops an implantable device called Inspire to treat obstructive sleep apnea, with the latest version, Inspire V, designed to enhance respiration during sleep through an implanted sensor and neurostimulator [3]. Group 3: Impact of the Allegations - On August 4, 2025, Inspire Medical disclosed that the launch of Inspire V was facing delays due to incomplete training and onboarding at treatment centers, which led to poor demand and excess inventory [5]. - Following this revelation, the company's stock price plummeted over 32%, from $129.95 to $87.91 per share, resulting in a loss of $1.2 billion in market capitalization in one day [6]. - From a high of $216.71 per share on September 23, 2024, the stock price dropped nearly 60%, erasing billions from the company's market capitalization [7].