What specific claims is Pomerantz LLP investigating against Inspire Medical Systems?

Specific claims under investigation

Pomerantz LLP is probing a class‑action securities‑fraud case that alleges Inspire Medical Systems, Inc. (NYSE: INSP) misled investors through material misstatements and omissions about the company’s clinical‑trial results, revenue‑recognition practices, and the timing of its FDA‑approval pathway. The complaint alleges that the company inflated its growth outlook and concealed setbacks in its “inspire” neuromodulation platform, thereby violating the anti‑fraud provisions of the Securities Exchange Act of 1934 (Rule 10b‑5) and related state securities laws.

Trading implications

• Short‑term risk: The filing introduces a “legal‑risk” catalyst that can trigger a downward pressure on INSP’s price in the next 1‑2 weeks, especially if the market perceives a material impact on future cash‑flow or regulatory timelines. Expect heightened volatility and a possible breach of the $30‑$32 per‑share support level (the current 2‑week low‑bounce zone).
• Technical view: INSP is currently trading near its 20‑day EMA (~$31.8) with the 50‑day SMA (~$33.2) acting as resistance. A break below the 20‑day EMA on volume could open a short‑to‑cover swing to the $29‑$28 range, where the 200‑day SMA (~$28.5) provides a potential floor.
• Strategic approach: For risk‑averse investors, consider tight‑stop‑loss shorts or protective put options (e.g., $30 strike) to hedge exposure. Conversely, investors with a longer‑term view may hold through the litigation, but should tighten position sizing until the case’s initial court‑filing date (expected in late Q4 2025) and any subsequent disclosures.