Pomerantz Law Firm Alerts Zynex Investors of Class Action Details and Deadlines

Overview


Zynex, Inc., a company publicly traded on NASDAQ under the symbol ZYXI, is currently facing a class action lawsuit filed by the Pomerantz Law Firm. This alert serves to inform investors who may have suffered losses regarding their investment in Zynex.

Legal Proceedings


Pomerantz LLP, known for its longstanding history in securities litigation, urges any affected individuals to reach out for guidance on their potential claims. Investors who have purchased Zynex securities during the specified Class Period are encouraged to contact the firm by May 19, 2025, to be considered for appointment as Lead Plaintiff. Detailed contact information for Pomerantz LLP includes Danielle Peyton's email and direct phone number.

Background on Zynex


The lawsuit is largely centered around allegations of securities fraud and other unapproved business practices conducted by Zynex and specific officers or directors associated with the company. Recent reports published in the medical journal STAT have suggested that Zynex is involved in potentially unethical practices, including an 'oversupplying scheme.' This scheme reportedly involves sending excessive quantities of medical supplies to generate higher insurance claims than reasonably warranted.

Impact of Negative Reports


On June 4, 2024, following the release of these reports, Zynex's stock price plummeted by $0.50, reflecting a 5% decrease, ultimately closing at $9.35 per share. This stock decline exhibited investor reactions to the reported allegations, indicating a lack of confidence in the company’s operational integrity.

Further scrutiny arose when on March 11, 2025, Zynex disclosed a revenue shortfall for the fourth quarter and the entirety of 2024. This shortfall was attributed to delayed payments from various insurers, including Tricare, which commands a significant portion of Zynex’s annual revenue. After disclosing these financial results, Zynex's stock saw a drastic drop, plummeting by $3.59 per share, or 51.3%, to close at $3.41.

The Role of Pomerantz LLP


Founded by legal pioneer Abraham L. Pomerantz, Pomerantz LLP has built a prominent reputation over 85 years for representing individuals in corporate, securities, and antitrust class actions. The firm has successfully recovered substantial financial awards for class members impacted by corporate fraud and misconduct. Investors are advised to visit the Pomerantz website for additional information and guidance as they navigate through this legal situation.

Conclusion


Individuals who have incurred losses due to their involvement with Zynex, Inc. are highly encouraged to consider their options, including participation in the class action. With upcoming deadlines fast approaching, timely action is essential for those wishing to assert their rights within this ongoing legal process. Stay informed and proactive in understanding your rights regarding potential securities fraud and Zynex's business practices.

Topics Financial Services & Investing)

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