Inspire Medical Systems Faces Class Action for Securities Fraud After 32% Stock Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
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Source: Globenewswire
- Lawsuit Initiation: Bleichmar Fonti & Auld LLP has filed a class action against Inspire Medical Systems and its executives for securities fraud following a significant stock drop, with investors encouraged to apply to lead the case by January 5, 2026.
- Stock Price Plunge: On August 4, 2025, Inspire disclosed delays in the launch of its new device, Inspire V, leading to a more than 80% reduction in 2025 earnings per share guidance, causing the stock price to plummet from $129.95 to $87.91, a drop of over 32%.
- Product Launch Issues: Inspire's failure to adequately prepare clinicians and payors resulted in low market acceptance of Inspire V, as customers faced excess inventory of older devices, negatively impacting the company's market performance.
- Legal Consequences: The lawsuit could have significant financial implications for Inspire, as a potential loss may result in substantial damages, further undermining investor confidence and affecting future financing capabilities.
Analyst Views on INSP
Wall Street analysts forecast INSP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INSP is 115.58 USD with a low forecast of 82.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 92.230
Low
82.00
Averages
115.58
High
180.00
Current: 92.230
Low
82.00
Averages
115.58
High
180.00
About INSP
Inspire Medical Systems, Inc. is a medical technology company. The Company is focused on the development and commercialization of advanced, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Its proprietary Inspire therapy is FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. It has developed a novel, closed-loop solution that continuously monitors a patient’s breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The Company sells its Inspire system to hospitals and ambulatory surgery centers (ASCs) in the United States (U.S.) and in select countries in Europe and Japan through a direct sales organization and sells its Inspire system in Singapore and Hong Kong through distributors. Its direct sales force engages in sales efforts and promotional activities focused on ear, nose and throat (ENT) physicians and sleep centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
