Inspire(US:INSP) Globenewswire·2025-12-10 21:50Core Viewpoint - A securities class action lawsuit has been filed against Inspire Medical Systems, Inc. (NYSE: INSP) for allegedly misleading investors about the operational readiness of its next-generation device, the Inspire V, leading to significant financial losses for investors [1][3]. Group 1: Allegations and Impact - The lawsuit claims that Inspire Medical assured investors of its operational readiness for the Inspire V launch, stating it was ready for a full commercial rollout, while concealing critical operational failures [3][4]. - Key undisclosed operational issues included delays in Medicare claims processing software updates, which only took effect on July 1, 2025, causing revenue bottlenecks [4]. - An excess inventory of the older Inspire IV device negatively impacted demand for the new Inspire V product, necessitating an inventory "burn down" [4]. - Many treatment centers had not completed the necessary training and onboarding for the new device, further hindering the launch [4]. Group 2: Financial Consequences - The alleged operational failures led Inspire Medical to cut its 2025 earnings per share (EPS) guidance by over 80%, resulting in a significant stock price drop of $42.04 per share, equating to a 32.4% decline in value [4][5]. - The lawsuit highlights that the stock collapse was attributed to management prioritizing a narrative of seamless transition over the actual operational challenges faced [5]. Group 3: Legal and Investigative Actions - Hagens Berman, the law firm leading the investigation, is encouraging investors who suffered losses during the class period from August 6, 2024, to August 4, 2025, to contact them before the January 5, 2026, lead plaintiff deadline [2][3]. - The firm is particularly focused on the concealment of the Medicare claims software failure and the inventory issues related to the Inspire IV device [5].