#United States #Class Action #Inc. #Securities Fraud #Englewood #Zynex

Class Action Lawsuit Filed Against Zynex, Inc.

Berger Montague PC has announced that a securities class action lawsuit has been filed against Zynex, Inc. (NASDAQ: ZYXI), targeting investors who purchased company securities from March 13, 2023, to March 11, 2025. This lawsuit aims to hold the company accountable for alleged activities that have adversely affected its shareholders.

Overview of Allegations

Zynex, a well-known medical device manufacturer based in Englewood, Colorado, specializes in electrotherapy devices intended for pain management and rehabilitation. Recent reports have shed light on questionable practices allegedly employed by the company, particularly a concerning “oversupplying scheme.”

On June 4, 2024, a report published by medical journal STAT painted a troubling picture of Zynex's operational practices, claiming that the company inundated pain patients with unnecessary supplies like electrode pads and batteries. This tactic allegedly enabled Zynex to falsely increase billings to insurers, implying unethical financial motives behind its business operations. The fallout from this report was significant, resulting in a 5% drop in the company's shares, closing at $9.35 on the day of publication.

Impact on Investors

The financial implications of these revelations became more pronounced when, on March 11, 2025, Zynex released its Q4 and full-year results for 2024. The company disclosed a revenue shortfall attributed to slow payments from certain payers, coupled with Tricare (the health insurance program for the U.S. military) temporarily suspending payments while conducting a review of prior claims. This disclosure led to a staggering 51% drop in Zynex's stock, closing at just $3.41 per share on March 12, 2025.

Investor Actions

For those who acquired Zynex securities during the defined class period, the deadline to seek appointment as a lead plaintiff is set for May 19, 2025. Investors are encouraged to learn more about their legal rights in this matter. As a potential lead plaintiff, an investor will represent the interests of the class members, and this role typically requires the investor to have made significant financial investments in Zynex.

Taking part in this lawsuit does not necessitate communicating with the appointed counsel unless choosing to take an active role. All members of the affected investor class may file a motion to serve as a lead plaintiff or may opt to remain passive participants in the case.

About Berger Montague

Berger Montague has built a robust reputation in the field of securities class action litigation since its inception in 1970, advocating for both individual and institutional investors. The law firm, with offices across major U.S. cities, including Philadelphia, Chicago, and San Francisco, has significant expertise representing clients in complex securities cases. Their seasoned attorneys are ready to guide investors through the legal intricacies involved in such class action lawsuits.

For more information or legal assistance, investors may reach out to Andrew Abramowitz or Peter Hamner at Berger Montague. Their experience and dedication could prove invaluable as Zynex investors contend with the ramifications of this lawsuit.

As this situation continues to develop, affected shareholders should stay informed and engaged regarding the ongoing legal proceedings, as it holds potential implications for their financial futures.