Inspire Medical Systems (INSP) stock plunged 8.28% in after-hours trading on Monday, following the company's disclosure that it received a civil investigative demand from the U.S. Department of Justice regarding an investigation into potential violations of federal law.
The medical device company, which focuses on obstructive sleep apnea treatments, said it received the civil investigative demand on January 17. However, the nature and scope of the investigation were not disclosed.
While the impact of the DOJ probe remains unclear, such investigations often carry significant legal risks and costs for companies. Investors reacted negatively to the news, sending Inspire Medical's shares sharply lower in the extended trading session.
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