Source: Stuart Mooney
Introduction
Inspire Medical Systems, Inc. (NYSE:INSP), a leading medical technology firm known for its breakthrough solutions for sleep apnea, is facing a significant challenge. The company, which was on a growth trajectory, has been hit with a class action lawsuit over allegations of providing misleading information about the launch of its latest product, Inspire V Device. The lawsuit, filed by the law firm Robbins LLP, claims that Inspire misrepresented facts to its investors, creating an inflated expectation about the product’s revenue potential.
Lawsuit and Its Impact
The lawsuit against Inspire Medical Systems centers around the company’s operational failures related to the launch of its Inspire V Device. According to the details revealed in the lawsuit, the company failed to provide adequate training to treatment centers. On top of that, there were also issues with the company’s IT systems, which further compounded the problem, causing a severe impact on the device’s rollout.
The consequences of these operational failures were significant. On August 4, 2025, the company had to revise its 2025 earnings guidance downwards by a staggering 80%. The announcement sent shockwaves through the market, leading to a precipitous drop in the company’s stock price. The stock price fell by more than 32%, from $129.95 to $87.91, wiping out $1.2 billion in market capitalization. The lawsuit and the subsequent fall in the stock price have put the company in a precarious position.
The Upgraded Stock and Potential Recovery
Despite the troubles faced by Inspire Medical Systems, not all is bleak. Wolfe Research, a leading investment research firm, upgraded Inspire’s stock to “Outperform” on November 25, 2025, when the stock was priced at $117.29. The upgrade indicates a vote of confidence in the company’s ability to weather the current crisis and make a potential recovery. It suggests that the research firm believes in the fundamental strength of Inspire Medical Systems and its capacity to bounce back.
Currently, the stock is trading at $125.22, reflecting the market’s cautious optimism about the company’s future prospects. However, the stock has seen a decrease of 1.66% today, equivalent to a $2.11 drop, demonstrating the ongoing volatility and investor uncertainty.
Volatility and Shareholder Action
Inspire’s stock has indeed experienced significant volatility, with a 52-week high of $216.01 and a low of $70.77. The company’s market capitalization stands at approximately $3.71 billion, with a trading volume of 508,655 shares. This volatility reflects the current uncertainty surrounding the company’s future due to the lawsuit and the potential impact on its financials and reputation.
For shareholders interested in joining the class action, the deadline to submit their papers is January 5, 2026. Robbins LLP is handling the case on a contingency fee basis. This lawsuit represents a crucial juncture for the company as the outcome could potentially shape Inspire Medical System’s future trajectory. Therefore, it’s a situation that current and potential investors should closely monitor.
Conclusion
In summary, Inspire Medical Systems is currently grappling with a significant challenge resulting from a class action lawsuit and a substantial drop in its stock price. However, the company still has the potential to recover, as indicated by the recent upgrade from Wolfe Research. The future of Inspire now depends on how effectively it can manage this crisis and restore investor confidence in its business model and growth prospects.