Inspire(US:INSP) Prnewswire·2025-12-01 19:35Core 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 decline in stock price [1][3]. Group 1: Lawsuit Details - The 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 [3]. - The complaint alleges violations of the Securities Exchange Act of 1934, claiming that management made false statements about the successful launch of the Inspire V device [3][7]. Group 2: Allegations Against Inspire Medical - The lawsuit claims that the transition to the Inspire V device was not seamless as promised, citing operational failures that hindered the launch [4]. - Key allegations include poor market demand due to existing inventory of the previous device, incomplete readiness for the rollout, and undisclosed logistical issues that affected billing and operational processes [10]. Group 3: Market Reaction - On August 4, 2025, Inspire Medical admitted to an "elongated timeframe" for the Inspire V launch, leading to a drastic reduction in 2025 earnings guidance by over 80% [5][6]. - Following this announcement, the company's stock price plummeted by over 32% on heavy trading volume, prompting the investor class action [6]. Group 4: Investigation Focus - Hagens Berman is investigating the claims against Inspire Medical, particularly focusing on potential misstatements or omissions related to the Inspire V launch and its financial implications [11]. - The investigation aims to determine if management was aware of critical operational flaws before the public disclosure on August 4 [12].