#United States #New York #Class Action #Pomerantz LLP #Zynex Inc

Pomerantz Law Firm's Class Action Alert for Zynex Inc

In a significant development for investors in Zynex, Inc., a class action lawsuit has been initiated by the Pomerantz Law Firm, a distinguished litigation company recognized for its commitment to protecting shareholders. The lawsuit addresses serious concerns regarding potential securities fraud and unethical business practices within the company.

Background of the Case

Zynex, Inc., listed on NASDAQ under the ticker symbol ZYXI, is primarily focused on the development of medical devices designed to alleviate pain. However, recent reports have raised troubling allegations against the company. According to a report published by medical journal STAT on June 4, 2024, Zynex has been accused of an “oversupplying scheme.” This scheme supposedly involved sending excessive quantities of medical supplies such as electrode pads and batteries to customers, thereby allowing Zynex to bill insurance companies for far more than the actual quantities supplied.

This practice reportedly caused insurers to remove Zynex from their networks, leading to a noticeable drop in stock price by $0.50, or 5%, closing at $9.35 per share on the day the report was released.

On March 11, 2025, Zynex revealed disappointing quarterly and yearly financial results, indicating a “shortfall” in revenue attributed to slow payments from various payers. Crucially, the company noted that Tricare, a major healthcare program for armed service members, had temporarily halted payments while reviewing its previous claims. The revelation resulted in a dramatic 51.3% plunge in Zynex’s stock price, which fell to $3.41 per share the following day.

Investor Action and Legal Proceedings

Investors who sustained losses due to Zynex’s alleged fraudulent activities are urged to contact the Pomerantz Law Firm for potential participation in the class action. Those affected can reach out to Danielle Peyton via email at [email protected] or by calling 646-581-9980. Interested investors must act before the upcoming deadline of May 19, 2025, to be considered for the role of Lead Plaintiff in the case. Individuals are advised to include their contact details and the number of shares purchased when reaching out for assistance.

Importance of the Class Action

Pomerantz LLP is noted for its long-standing legacy in the realm of corporate and securities litigation. Established by the pioneer of class action law, Abraham L. Pomerantz, the firm has dedicated over 85 years to championing the rights of investors facing corporate misconduct. The firm has successfully secured multi-million dollar awards for its clients, emphasizing its commitment to justice in financial markets.

As investor sentiment fluctuates in response to Zynex’s troubling developments, this class action represents a critical opportunity for shareholders to collectively hold the company accountable for its alleged actions. While the situation unfolds, it remains essential for affected investors to stay informed and consider their options regarding potential legal participation.

For pioneering efforts to seek restitution and redress for losses, affected investors are encouraged to reach out promptly.

Conclusion

In light of these serious allegations against Zynex Inc, investors are reminded of their rights and the available recourse through Pomerantz LLP. The unfolding legal situation underscores a vital moment in the fight against securities fraud and corporate deceit, signaling the importance of investor vigilance and action in protecting financial interests.