Inspire Medical Systems, Inc.

On August 4, 2025, Inspire disclosed that the launch of its new sleep apnea device, the Inspire V, was facing an “elongated timeframe” due to several issues, including “many centers [not completing] the training, contracting and onboarding criteria required prior to the purchase and implant of Inspire V,” “software updates for claims submissions and processing” not taking effect until early July, and excess inventory causing poor demand. Further, the Company reduced its 2025 earnings guidance by more than 80%, from $2.20 to $2.30 per share to $0.40 to $0.50 per share.

On this news, Inspire’s stock price fell $42.04, or 32.4%, to close at $87.91 per share on August 5, 2025, thereby injuring investors.The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) demand for Inspire V was poor, as providers had significant amounts of surplus inventory and were reluctant to transition to a new treatment; (2) Inspire failed to complete training and onboarding for “many” of its treatment center customers; failed to set up basic IT systems, including a customer approval process; failed to ensure that critical insurer claims software was properly updated to facilitate claims processing and payment; and failed to ensure that Medicare reimbursement was in place at the time of the launch; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.