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

NEW YORK--(BUSINESS WIRE)--Today, Grant & Eisenhofer P.A. filed a class action lawsuit on behalf of City of Pontiac Reestablished General Employees’ Retirement System against Inspire Medical Systems, Inc. (“Inspire Medical” or the “Company”) and three of the Company’s senior executives, including CEO Timothy Herbert, CFO Richard Buchholz, and Chief Strategy and Growth Officer Carlton Weatherby (collectively, the “Defendants”). The action alleges that Defendants defrauded investors by making materially false and/or misleading statements and by failing to disclose materially adverse facts concerning the launch of the Company’s new product, a sleep apnea device called “Inspire V.”

The lawsuit alleges that throughout the Class Period, Defendants misrepresented and failed to disclose key facts about Inspire V, including the actual market demand for the device and whether the company had taken the steps necessary to successfully launch

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The action is brought on behalf of all persons or entities who purchased or acquired Inspire Medical common stock from August 6, 2024 through August 4, 2025, inclusive (the “Class Period”). The action, brought in the United States District Court for the District of Minnesota, is captioned City of Pontiac Reestablished General Employees’ Retirement System v. Inspire Medical Systems, Inc., et al., No. 0:25-cv-04247 (D. Minn.).

Inspire Medical develops and manufactures an implantable medical device called “Inspire” to treat obstructive sleep apnea. The latest version of the Company’s device, Inspire V, uses an implanted sensor and neurostimulator designed to improve respiration during sleep.

The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the lawsuit alleges that throughout the Class Period, Defendants misrepresented and failed to disclose key facts about Inspire V, including the actual market demand for the device and whether the company had taken the steps necessary to successfully launch it. Defendants issued a series of materially false and misleading statements that led investors to believe demand for Inspire V was strong and that Company had taken the necessary steps for a successful launch.

Investors learned the truth on August 4, 2025 when the Company revealed that the Inspire V launch was facing an “elongated timeframe” because, among other issues, “many centers did not complete the training, contracting and onboarding criteria required prior to the purchase and implant of Inspire V.” That same day, Defendants further admitted that although Inspire V’s CPT code has been approved for Medicare patients, “software updates for claims submissions and processing did not take effect until July 1,” which meant that “implanting centers would not be able to bill for those procedures until July 1.” As a result, many treatment centers simply chose to continue treating with Inspire IV. Finally, Defendants revealed that the Inspire V rollout was plagued by poor demand resulting from excess inventory, and the Company reduced its 2025 earnings guidance by more than 80%.

On this news, the price of the Company’s common stock declined more than 32%, from a close of $129.95 per share on August 4, 2025, to close at $87.91 per share on August 5, 2025 wiping out $1.2 billion in market capitalization in a single day of trading. From the Company’s Class Period stock price closing high of $216.71 per share on September 23, 2024, Inspire Medical’s stock price dropped an astonishing $127.00 per share, or nearly 60%, erasing billions of dollars from the Company’s market capitalization.

Investors who purchased or acquired Inspire Medical common stock during the Class Period are members of this proposed Class and may be able to seek appointment as lead plaintiff, which is a court-appointed representative of the Class, by complying with the relevant provisions of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). See 15 U.S.C. Section 78u-4(a)(2)(A)(i)-(iv).

If you wish to serve as lead plaintiff, you must move the Court by no later than January 5, 2026. You do not need to seek to become a lead plaintiff in order to share in any possible recovery. You may also retain counsel of your choice to represent you in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights, please contact Karin E. Fisch at Grant & Eisenhofer at 646-722-8500, or via email at kfisch@gelaw.com.