Inspire(US:INSP) Globenewswire·2025-11-24 20:34Core Viewpoint - Inspire Medical Systems, Inc. is facing a securities class action lawsuit due to allegations of misleading investors regarding the launch of its Inspire V device for obstructive sleep apnea, which resulted in a significant stock price decline [1][5]. Group 1: Lawsuit Details - The class action lawsuit, titled City of Pontiac Reestablished General Employees' Retirement System v. Inspire Medical Systems, Inc., targets the company and its executives, representing investors who acquired stock between August 6, 2024, and August 4, 2025 [2]. - The lawsuit alleges violations of the Securities Exchange Act of 1934, claiming that management made false statements and failed to disclose operational issues that hindered the product launch [2][6]. Group 2: Allegations Against Inspire Medical - The complaint asserts that the transition to the Inspire V device was not as seamless as claimed, with management allegedly providing misleading assurances about the launch's success [3][6]. - Key allegations include poor market demand for the Inspire V, with providers holding excess inventory of the previous device and being hesitant to adopt the new version [8]. - The lawsuit highlights incomplete readiness for the rollout, with essential tasks not being completed, and logistical issues such as training and billing code delays that were not disclosed prior to the product launch [8]. Group 3: Market Reaction - On August 4, 2025, Inspire Medical admitted to an "elongated timeframe" for the Inspire V launch due to undisclosed challenges, leading to a drastic reduction in its 2025 earnings guidance by over 80% [4][5]. - Following this announcement, the company's stock price plummeted by over 32% on high trading volume, prompting the initiation of the investor class action [5].