Glancy Prongay & Murray LLP alerts investors to the May 19, 2025 deadline for filing a lead plaintiff motion in the class action lawsuit involving Zynex, Inc. (“Zynex” or the “Company”) ZYXI. The lawsuit pertains to investors who acquired Zynex securities between March 13, 2023 and March 11, 2025 (the “Class Period”).

IF YOU SUFFERED A LOSS ON YOUR ZYNEX INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.

What Happened?

On June 4, 2024, medical journal STAT published a critical article about Zynex titled “How a device maker inundated pain patients with unwanted batteries and surprise bills.” The report accused Zynex of running an “oversupplying scheme” by sending excessive monthly supplies, such as electrode pads and batteries, to inflate insurance claims significantly. The article further indicated that insurers had begun removing the company from their networks due to these actions.

In response to this news, Zynex’s stock dropped by $0.50 per share, equating to a 5% decrease, closing at $9.35 per share on June 4, 2024, amidst higher than usual trading volumes.

Later, on March 11, 2025, Zynex announced its fourth-quarter and full-year 2024 financial results. The company reported a notable revenue shortfall attributed to delayed payments from certain insurers. Zynex disclosed that Tricare, the health insurance program for the U.S. military, had temporarily halted payments pending a review of prior claims.

After this announcement, Zynex’s stock plummeted by $3.59 per share or 51.3%, resulting in a closing price of $3.41 per share on March 12, 2025, also on significantly increased trading volume.

What Is The Lawsuit About?

The class action complaint alleges that throughout the Class Period, the Defendants made materially false and misleading statements while omitting crucial adverse information about the Company’s operations and future prospects. It claims that the Defendants failed to reveal multiple critical issues, including: (1) Zynex’s practice of sending products, such as electrodes, beyond actual needs; (2) the consequent inflation of revenue; (3) increased scrutiny from insurers, including Tricare, due to false claims; (4) the likelihood of facing serious repercussions, including removal from certain insurance networks and potential government penalties; and (5) that Defendants’ optimistic statements regarding Zynex’s operations were significantly misleading and lacked factual support.

If you acquired Zynex securities during the Class Period, you can move the Court for the appointment as lead plaintiff in this class action by the May 19, 2025 deadline.

Contact Us To Participate or Learn More:

For inquiries about this action, or if you have questions regarding your rights or interests, please contact:

Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

If you reach out via email, please include your mailing address, telephone number, and the number of shares you purchased.

To be part of the class action, no immediate action is required. You may choose to retain legal counsel or remain an absent member of the class action.

This press release may be regarded as Attorney Advertising in certain jurisdictions according to applicable laws and ethical guidelines.

View the source version on businesswire.com:
https://www.businesswire.com/news/home/20250324677237/en/

Contact Us:
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: shareholders@glancylaw.com
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.