Pomerantz Law Firm Initiates Class Action Against Zynex, Inc. for Alleged Securities Fraud

In recent developments, the Pomerantz Law Firm has confirmed that a class action lawsuit has been filed against Zynex, Inc. (NASDAQ: ZYXI). This legal action is aimed at protecting investors who have sustained losses related to their investments in Zynex. Interested parties are encouraged to reach out to Danielle Peyton at the firm for further information, specifically those who acquired securities during the classified period.

The essence of this class action centers on allegations that Zynex and its higher management may have engaged in securities fraud or other unlawful practices detrimental to investors. Affected investors have until May 19, 2025, to petition the court to be recognized as Lead Plaintiff in this ongoing litigation. Investors are advised to submit their details, including mailing address, contact numbers, and purchase details of Zynex shares, to expedite their claims.

Background of the Case

The controversy began after a report published by medical journal STAT on June 4, 2024, raised significant concerns about Zynex’s business strategies. The article, titled How a device maker inundated pain patients with unwanted batteries and surprise bills, accused Zynex of a practice described as an “oversupplying scheme.” This involved sending excessive quantities of necessary medical supplies, such as batteries and electrode pads, ultimately leading to inflated insurance claims reaching thousands more than necessary. Consequently, many insurers opted to sever ties with the company, seriously impacting its reputation and operational integrity.

In response to this report, Zynex’s stock plummeted by 5%, recovering only slightly before further financial disclosures exacerbated the situation. The downward trajectory of Zynex’s stock price continued on March 11, 2025, following the announcement of fourth quarter results reflecting a substantial revenue shortfall. The company cited delayed payments from key payers, notably Tricare—a significant source of its revenue as it accounts for nearly a quarter of annual operations.

After revealing these troubling financial results, Zynex’s stock was hit hard once again, falling by more than 51% in just one day. This dramatic decline has left investors and analysts concerned about the company’s future and operational sustainability.

The Role of Pomerantz LLP

Pomerantz LLP stands as a prominent player in corporate, securities, and antitrust class litigation. With a legacy of more than 85 years, the firm has successfully fought for the rights of individuals affected by securities fraud and corporate misconduct. The firm’s dedication to recovering losses for class members has resulted in numerous multimillion-dollar payouts.

Stakeholders should promptly assess their investment positions and consider participating in this class action, particularly if they've suffered due to Zynex's alleged mismanagement. Pomerantz continues to offer resources and support for those aiming to reclaim their investments and seek justice against corporate malfeasance.

For more information regarding the class action lawsuit or to obtain a copy of the complaint, interested parties are directed to visit Pomerantz Law.

Antonio Miranda, a financial analyst, warns investors, stating, “The implications of these accusations might have far-reaching consequences not only for Zynex but also for their investors. It is imperative to understand one’s legal standing and the potential benefits of joining the class action.”

In conclusion, the ongoing class action against Zynex serves as a stark reminder of the many risks associated with corporate investments and the importance of diligence in protecting investor rights. Individuals are encouraged to stay informed and act quickly to safeguard their financial interests.