Latham & Watkins Disqualified in Inspire IP Suit Against Nyxoah

Latham & Watkins LLP was barred from representing Inspire Medical Systems Inc. in a patent dispute over a competitor’s sleep apnea product.

Latham’s “continued representation of Inspire in this matter would appear deeply improper,” given the confidential information Latham obtained in its four-year relationship with Nyxoah SA‘s stock offering underwriters, Magistrate Judge Eleanor G. Tennyson of the US District Court for the District of Delaware said in a Tuesday order.

Inspire sued Belgium-based Nyxoah for allegedly infringing several of its US patents ahead of Nyxoah launching its Genio sleep apnea therapy device in the US. Nyxoah sued Inspire in a separate case in September, asserting Inspire is infringing its own patents related to Inspire’s therapy systems.

Nyxoah went public in 2021 to finance the development of Genio. Nyxoah retained Cantor Fitzgerald LP, and eventually Morgan Stanley, to underwrite several offerings. Both firms were represented by Latham during the due diligence process.

Latham withdrew from representing Morgan Stanley and Cantor Fitzgerald before a stock offering earlier this year due to a business conflict, which was later revealed to be the firm’s representation of Inspire in this case.

Nyxoah moved to disqualify Latham, arguing that based on Latham’s years of access to Nyxoah’s confidential information, including on the accused product, Latham’s representation of Inspire gives the appearance of impropriety.

Although Latham never had any fiduciary or attorney-client relationship with Nyxoah, Latham “obtained access to confidential information from Nyxoah that is extremely pertinent to the present dispute,” Tennyson said.

Latham had access to Nyxoah’s financial information and internal documents detailing the company’s views on competing products, such as Inspire’s. The firm also participated in “no fewer than six intellectual property due diligence calls with Nyxoah” while advising its underwriters, during which Nyxoah would provide its views on its own IP assets and products, including Genio, the magistrate judge said.

To the outside, it appears Latham used confidential information Nyxoah provided to “garner business in the form of a patent-infringement suit against Nyxoah” by its competitor. Whether that’s what happened is irrelevant, Tennyson said, adding that the appearance of impropriety is “glaring.”

The magistrate judge rejected Latham’s assertion that Nyxoah can’t point to any case where a court disqualified an underwriter’s counsel for being adverse to the stock issuer in a later case. The character of the relationship between Latham, Nyxoah, and the underwriters isn’t the basis for disqualification. Rather, the record shows Nyxoah provided confidential information to Latham, as the underwriters’ counsel, that is “highly relevant” to use against Nyxoah in this case, Tennyson said.

The equities also weigh in favor of disqualification, since the case is still in early stages and any inconvenience to Inspire to retain new counsel doesn’t outweigh prejudice against Nyxoah, Tennyson said.

Morris, Nichols, Arsht & Tunnell LLP represents Inspire. Duane Morris LLP represents Nyxoah.

The case is Inspire Med. Sys. Inc. v. Nyxoah Inc., D. Del., No. 1:25-cv-00667, 11/18/25.