Glancy Prongay & Murray LLP (“GPM”) has initiated a class action lawsuit in the United States District Court for the District of Colorado. The case, Tuncel v. Zynex, Inc., et al., Case No. 25-cv-00913, represents individuals and entities who purchased or acquired Zynex, Inc. (“Zynex” or the “Company”) ZYXI securities during the period from March 13, 2023 to March 11, 2025 (the “Class Period”). The plaintiff claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors are notified that they have 60 days from the date of this notice to file a motion with the Court to be appointed as lead plaintiff in this case.

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

What Happened?

On June 4, 2024, medical journal STAT published an article titled “How a device maker inundated pain patients with unwanted batteries and surprise bills.” The report alleged that Zynex was involved in an “oversupplying scheme,” where it sent excessive monthly supplies, such as electrode pads and batteries, in order to “bill insurers for thousands of dollars more.” This practice reportedly led to insurers “kicking the company out of network.”

Following the publication of this report, Zynex’s stock price dropped $0.50, or 5%, to close at $9.35 per share on June 4, 2024, with notable trading volume.

On March 11, 2025, Zynex released its fourth quarter and full year 2024 financial results, disclosing a significant revenue “shortfall” due to slower-than-normal payments from certain payers. The Company announced that “Tricare has temporarily suspended payments while reviewing prior claims.” Tricare is the health insurance program serving U.S. military personnel.

In the wake of this news, Zynex’s stock plummeted $3.59 per share, or 51.3%, closing at $3.41 per share on March 12, 2025, also amid heavy trading volume.

What Is The Lawsuit About?

The lawsuit alleges that throughout the Class Period, Defendants made materially false and misleading statements while failing to disclose significant adverse facts regarding the Company’s business and prospects. Specifically, the lawsuit claims that Defendants did not reveal: (1) Zynex’s shipment of products exceeded patient needs; (2) this contributed to inflated revenue figures; (3) scrutiny from insurers, including Tricare, due to false claims; (4) the likelihood of adverse consequences such as network removal and federal penalties; and (5) that previous positive statements about the Company’s status were materially misleading.

Individuals who purchased or acquired Zynex securities during the Class Period are encouraged to move the Court no later than 60 days from this notice to request the Court to appoint them as lead plaintiff.

Contact Us To Participate or Learn More:

For further information about this lawsuit or any related inquiries concerning your rights, please contact:

Charles Linehan, Esq.
Glancy Prongay & Murray LLP
1925 Century Park East, Suite 2100
Los Angeles, California 90067
Email: [email protected]
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 contacting via email, please provide your mailing address, phone number, and the number of shares purchased.

You are not required to take action to remain a member of the Class; you may choose to retain your own counsel or take no action.

This announcement may be considered Attorney Advertising in certain jurisdictions according to applicable law and ethical regulations.

View the original version on businesswire.com: https://www.businesswire.com/news/home/20250320282457/en/

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