Kaskela Law LLC is investigating Inspire Medical Systems, Inc. (NYSE: INSP) (“Inspire Medical”) on behalf of the company’s long-term shareholders.
Recently a securities fraud complaint was filed against Inspire Medical on behalf of certain investors who purchased shares of the company’s stock between May 3, 2023 and November 7, 2023. According to the complaint, during that time period Inspire Medical and certain of the company’s senior executives made a series of materially false and/or misleading statements about the company’s “Acceleration Program,” which was reportedly designed to facilitate customers’ receiving prior authorizations from doctors for Inspire Medical’s sleep apnea products (“Inspire therapy”) by acting as a liaison between patients and their doctors.
On November 7, 2023, Inspire Medical announced disappointing earnings results for the third quarter of 2023 – its first reported revenue miss since becoming a public company in 2018. Therein, the company disclosed that it had started to “track” problems with the Acceleration Program in the second quarter of 2023, including a decrease in the number of prior authorization submissions for Inspire therapy, and “recogniz[ed] this trend early in the third quarter”—i.e., as early as July 1, 2023. Inspire Medical’s CEO further disclosed that prior to the company’s second quarter 2023 earnings call on August 2, 2023, “we had strong confirmation” of the problems with the Acceleration Program, and “we realized we needed to take some corrective action.”
Following this news, shares of Inspire Medical’s stock fell $31.79 per share, or nearly 20% in value, from a closing price of $161.74 per share on November 7, 2023, to a closing price of $129.65 per share on November 8, 2023.
The investigation seeks to determine – on behalf of the company’s current shareholders – whether the members of Inspire Medical’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Current Inspire Medical shareholders who purchased or acquired INSP shares prior to May 3, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (888) 715 – 1740 or (484) 229 – 0750, or by completing the form on this page, for additional information about this investigation and their legal rights and options.