#USA #New York #Class Action #Pomerantz #Zynex

Pomerantz Law Firm's Class Action Against Zynex, Inc.

The Pomerantz Law Firm has recently announced the initiation of a class action lawsuit against Zynex, Inc. (NASDAQ: ZYXI), a company specializing in medical devices. This legal action comes amid growing concerns regarding possible securities fraud and inappropriate business practices within the company. Investors who have sustained losses due to their investment in Zynex during a specific class period are encouraged to act swiftly to ensure their participation in the proceedings.

Details of the Class Action

According to Pomerantz LLP, the class action centers around claims that Zynex and some of its key officers and directors engaged in fraudulent activities. Affected investors are advised to reach out to Danielle Peyton, an attorney at Pomerantz, to discuss their participation in the lawsuit—potentially allowing them to act as Lead Plaintiff if they qualify. Interested parties can contact her via email or phone, and it's recommended to provide pertinent information such as their mailing address, phone number, and details regarding the shares purchased.

Investors must take note of the deadline set for May 19, 2025, which marks the last day to petition for Lead Plaintiff status. More information regarding the complaint can be accessed through the official Pomerantz website.

Background of the Allegations

The lawsuit emerged against the backdrop of critical reports surrounding Zynex's business practices. Notably, a 2024 report by medical journal STAT accused Zynex of deploying an “oversupplying scheme.” This report alleged that the company inundated patients with excessive quantities of products, such as electrode pads and batteries, ostensibly to bill insurers for far greater amounts than would ordinarily be permissible. Such practices had detrimental effects, as insurers began to remove Zynex from their networks due to these controversial sales tactics.

The impact of these accusations was immediately apparent. On June 4, 2024, following the publication of the STAT report, Zynex's stock value plummeted by 5%, closing at $9.35 per share, due to the adverse investor sentiment and heightened scrutiny.

Further exacerbating the situation, Zynex's financial report, released on March 11, 2025, revealed significant revenue shortfalls attributed to slower payment timelines from various payers. This report disclosed that Tricare, a major payer responsible for up to 25% of Zynex's annual revenue, had paused its payments while reassessing prior claims. Consequently, Zynex's stock experienced a dramatic decline, with a staggering drop of approximately 51.3%, leading to a closing price of $3.41 per share on March 12, 2025.

About Pomerantz Law Firm

Pomerantz LLP is celebrated as one of the most prominent firms engaged in corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, who is widely recognized as the pioneer of securities class action law, the firm has in excess of 85 years of experience advocating for victims of corporate fraud. Pomerantz has successfully secured numerous multimillion-dollar recovery awards on behalf of class members across a range of cases related to securities fraud and corporate misconduct.

With offices situated in major cities such as New York, Chicago, and London, Pomerantz remains dedicated to upholding shareholder rights and ensuring corporate accountability. Investors seeking more information about the firm or those involved in the Zynex case should visit their official website.

The current landscape has created a ripe environment for investor advocates, and as the Zynex situation unfolds, many are left to ponder the implications of corporate transparency and ethical business conduct.