Inspire Medical Systems Faces Class Action for Securities Fraud After 32% Stock Drop
Written by Emily J. Thompson, Senior Investment Analyst
Source: Globenewswire
Updated: 6 day ago0mins
- 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 an elongated launch timeframe for its Inspire V device and reduced its 2025 earnings per share guidance by over 80%, resulting in a stock price drop from $129.95 to $87.91, a decline of more than 32%.
- Product Launch Issues: Inspire failed to adequately prepare clinicians and payors for the rollout of Inspire V, leading to weak market demand as customers were left with excess inventory of older devices, which adversely affected the adoption of the new product.
- Legal Consequences: This lawsuit could have significant financial implications for Inspire, as a potential loss may result in substantial damages, further undermining investor confidence and impacting future financing capabilities.
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Analyst Views on INSP
Wall Street analysts forecast INSP stock price to fall 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: 140.030
Low
82.00
Averages
115.58
High
180.00
Current: 140.030
Low
82.00
Averages
115.58
High
180.00
Baird
NULL -> Outperform
maintain
$125 -> $180
2025-12-04
New
Reason
Baird
Price Target
$125 -> $180
2025-12-04
New
maintain
NULL -> Outperform
Reason
Baird raised the firm's price target on Inspire Medical to $180 from $125 and keeps an Outperform rating on the shares. The firm updated its model following its meetings with management.
Morgan Stanley
Overweight -> Equal Weight
downgrade
$130
2025-12-02
New
Reason
Morgan Stanley
Price Target
$130
2025-12-02
New
downgrade
Overweight -> Equal Weight
Reason
Morgan Stanley downgraded Inspire Medical to Equal Weight from Overweight with a $130 price target.
Wolfe Research
Peer Perform
to
Outperform
upgrade
$180
2025-11-25
Reason
Wolfe Research
Price Target
$180
2025-11-25
upgrade
Peer Perform
to
Outperform
Reason
Wolfe Research upgraded Inspire Medical to Outperform from Peer Perform with an $180 price target. The firm says the "surprise" 50% Medicare reimbursement raise "pumps oxygen" into the stock's bull case. Inspire has already de-risked 2026 estimates, its 2025 "launch snafus" are nearly behind the company and it has "long list of potential acquirers," the analyst tells investors in a research note. Paying revenue-times estimated 2026 revenue, which the price target represents, it "not crazy" for a SMID-cap medical technology stock, contends Wolfe. Inspire Medical shares in premarket trading are up $1.71 to $119.00.
Truist
Hold
to
Buy
upgrade
$128 -> $165
2025-11-25
Reason
Truist
Price Target
$128 -> $165
2025-11-25
upgrade
Hold
to
Buy
Reason
Truist upgraded Inspire Medical to Buy from Hold with a price target of $165, up from $128.
See All Ratings
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
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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.
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