Key Deadline Approaches in Inspire Medical Securities Litigation

Multiple law firms issued reminders to investors on Friday regarding a critical cutoff date in a pending class action lawsuit against medical device company Inspire Medical. The litigation centers on allegations that the firm made misleading statements during the rollout of its new sleep apnea device, the "Inspire V." Affected shareholders have until January 5, 2026, to file a claim.

The collective legal action alleges that Inspire Medical and certain of its executives misrepresented the "operational readiness" for the launch of the Inspire V system. According to the complaint, the company failed to disclose significant issues, including critical flaws in billing software updates, inadequate training programs for clinicians, and an excess inventory of older Inspire IV devices still held by physicians.

These operational challenges reportedly came to light on August 4, 2025. On that date, the company revised its product launch timeline downward and slashed its full-year 2025 profit forecast by more than 80%. The subsequent market reaction was severe, with Inspire Medical's stock price plummeting over 32% in a single trading session.

Should investors sell immediately? Or is it worth buying Inspire Medical?

Valuation Concerns Amid Legal Uncertainty

Despite shares recovering approximately 10% last week, the company's market valuation remains under scrutiny. A recent analysis published by Simply Wall St. on December 5 suggests the equity could be significantly overvalued based on a discounted cash flow model.

The lawsuit presents another layer of uncertainty for the business. Investors who purchased Inspire Medical securities between August 6, 2024, and August 4, 2025, must note the January 5, 2026, deadline to seek lead plaintiff status in the proceeding. The final outcome of the case could have material implications for the company's future.