NEW YORK, Dec. 26, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Minnesota on behalf of all persons or entities who purchased or otherwise acquired Inspire Medical Systems Inc. (“Inspire Medical” or the “Company”) (NYSE: INSP) securities between May 3, 2023 and November 7, 2023, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.

The Complaint alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that the Defendants failed to disclose to investors that: (1) despite the Acceleration Program, customers were encountering challenges with the prior authorization submission process, including with the scheduling of appointments; (2) a slowdown in prior authorization submissions arising from these challenges led to a shortfall of hundreds of procedures to implant the Company’s OSA device; (3) as a result, Defendants’ positive statements about the Company’s financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

The Complaint further alleges that the truth emerged after the close of markets on November 7, 2023, when the Company announced disappointing earnings results for the third quarter of 2023, including “a decline in prior authorization submissions for patients seeking Inspire therapy.” The Complaint also alleges that Inspire Medical further admitted it had started to “track” problems with the Acceleration Program no later than the second quarter of 2023, the Company “had strong confirmation” of the problems with the Acceleration Program, and the Company “realized we needed to take some corrective action.” The Complaint alleges that in response to this news, shares of Inspire Medical declined approximately 20%, from a closing price of $161.74 per share on November 7, 2023, to a closing price of $129.95 per share on November 8, 2023.

Investors who purchased or otherwise acquired shares of Inspire Medical should contact the Firm prior to the February 20, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

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