#United States #New York #Class Action #Wolf Haldenstein #Zynex

Zynex, Inc. Faces Class Action Lawsuit

Zynex, Inc. (OTCMKTS: ZYXIQ) is now at the center of a significant class action lawsuit, initiated by Wolf Haldenstein Adler Freeman & Herz LLP. The legal action targets investors who acquired shares during the period from February 25, 2021, through December 15, 2025. Legal representatives are strongly urging impacted shareholders to come forward and take necessary steps before the lead plaintiff appointment deadline on April 21, 2026.

Core Allegations Against Zynex

The lawsuit outlines several severe allegations against Zynex. It claims that the company violated federal securities laws through materially misleading statements. Here are the primary grievances:

1. Excess Product Shipments: It is alleged that Zynex shipped an excessive number of products, which were not medically necessary. This purportedly inflated the company's reported revenue figures.

2. Revenue Inflation: Following the shipment of these unnecessary products, the company's financial reports showed inflated revenues, misleading investors regarding the actual financial health of Zynex.

3. False Claims Scrutiny: The billing practices of Zynex have come under scrutiny, particularly from insurers such as Tricare, raising ethical questions about the company's operations.

4. Litigation by Travelers: An additional layer of legal trouble arises from a lawsuit filed by Travelers in California, which accuses Zynex and some executives of engaging in fraudulent overbilling schemes totaling over $23 million across numerous claims from 2018 to 2023.

5. Compliance Failures: It is alleged that the management prioritized aggressive growth at the expense of compliance with regulations. This negligence has led to failures in maintaining adequate internal controls.

6. Improper Order Growth: The company reportedly reported order growth that was driven by questionable overbilling practices, calling into question the integrity of their business model.

7. Regulatory Risks: Zynex faces significant risks, including potential removal from insurer networks and hefty federal government penalties.

8. Misleading Statements: Given the aforementioned issues, it is claimed that the positive public statements from Zynex lacked a reasonable basis and misled investors regarding the company's true operations and prospects.

Seeking Justice with Wolf Haldenstein

Wolf Haldenstein, a law firm with a notable history since its founding in 1888, is well-equipped to lead this fight. They emphasize their commitment to pursuing justice for investors who are victims of misleading corporate practices. With over 125 years of specialized experience in securities litigation, Wolf Haldenstein aims to protect the rights of investors.

Investors who feel they have been adversely affected or have relevant information are encouraged to connect with Wolf Haldenstein as soon as possible. The urgency is underscored by the upcoming deadline for lead plaintiff applications, ensuring that investors have an opportunity to seek recovery for their losses.

For further assistance, affected shareholders can reach out via:

• - Phone: (800) 575-0735 or (212) 545-4774
• - Email: [email protected]
• - Contact Person: Gregory Stone, Director of Case and Financial Analysis

In conclusion, if you are an investor impacted by Zynex's alleged fraudulent activities during the specified time frame, now is the time to advocate for your rights and seek legal representation through Wolf Haldenstein.