Important Deadline for Zynex, Inc. Investors Approaching Soon

The Law Offices of Howard G. Smith reminds investors about the critical May 19, 2025 deadline to file a lead plaintiff motion in a class action lawsuit on behalf of investors who purchased Zynex, Inc. (“Zynex” or the “Company”) ZYXI securities between March 13, 2023 and March 11, 2025, collectively known as the “Class Period.”

IF YOU ARE AN INVESTOR WHO INCURRED A LOSS IN ZYNEX, INC. (ZYXI), PLEASE CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO ENGAGE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Interested parties can reach the Law Offices of Howard G. Smith via email at [email protected], by telephone at (215) 638-4847, or by visiting our website at www.howardsmithlaw.com.

What Happened?

A report published by medical journal STAT on June 4, 2024, titled “How a device maker inundated pain patients with unwanted batteries and surprise bills,” alleged that Zynex engaged in a practice of “oversupplying” by sending excessive monthly supplies, including electrode pads and batteries. This tactic reportedly allowed Zynex to bill insurers for amounts significantly above what would typically be permitted. The report further disclosed that this conduct led to insurers “kicking the company out of network.”

Following this information, Zynex’s stock price dropped by $0.50 or 5%, closing at $9.35 per share on June 4, 2024, accompanied by unusually high trading volume.

On March 11, 2025, after the market closed, Zynex announced its fourth quarter and full year financial results for 2024. The report indicated a substantial revenue “shortfall” for the quarter, attributing it to delayed payments from various payers. The Company also noted that “Tricare has temporarily suspended payments as they review prior claims.” Tricare is known as the health insurance program for U.S. military personnel.

As a consequence of this news, Zynex’s stock fell by $3.59, or 51.3%, ending at $3.41 per share on March 12, 2025, amid unusual trading activity.

What Is The Lawsuit About?

The class action complaint alleges that during the Class Period, Defendants made materially false and misleading statements and withheld crucial information about the Company’s business and prospects. Specifically, Defendants are accused of failing to disclose: (1) that Zynex shipped excessive products, including electrodes; (2) that this practice inflated the Company’s revenue; (3) that this strategy drew scrutiny from insurers, such as Tricare; (4) that it was reasonably likely Zynex would face negative repercussions, including removal from insurer networks and federal penalties; and (5) that Defendants’ optimistic statements about the Company lacked a reasonable basis due to these issues.

If you acquired Zynex securities during the Class Period, you may file a motion with the Court no later than May 19, 2025 to request the appointment as lead plaintiff if you fulfill specific legal criteria.

Contact Us To Participate or Learn More:

For additional information regarding this class action, or if you have questions about this announcement or your rights in these matters, please contact us:

Law Offices of Howard G. Smith

3070 Bristol Pike, Suite 112

Bensalem, Pennsylvania 19020

Telephone: (215) 638-4847

Email: [email protected]

Visit: www.howardsmithlaw.com.

To remain a part of the class action, no immediate action is required. You may choose to retain counsel or remain absent from the action.

This announcement may be considered Attorney Advertising in certain jurisdictions under applicable law and ethical guidelines.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250325253833/en/

Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

[email protected]

www.howardsmithlaw.com