Inspire Medical’s Leaders Hid Insurance Pivot, Investor Says (1)

Directors and executives at Inspire Medical Systems Inc. caused the sleep apnea device maker not to disclose that it stopped working directly with physicians to secure insurance coverage, an investor alleges in a new suit.

The changes to the program helping customers get prior authorization for Inspire’s implantable device had a big impact on the number of implant procedures and the company’s bottom line, Lawrence Hollin says in a derivative suit. He filed his complaint on behalf of the company Tuesday in the US District Court for the District of Minnesota.

Inspire is now exposed to “massive class-wide liability” from ...