Robbins LLP Urges Zynex, Inc. Shareholders Facing Losses to Join Class Action Lawsuit

Robbins LLP Calls Attention to Zynex, Inc. Class Action Lawsuit

On March 31, 2025, Robbins LLP made a public reminder to stockholders of Zynex, Inc. (NASDAQ: ZYXI) about a class action lawsuit initiated on behalf of those who purchased or acquired Zynex securities between March 13, 2023, and March 11, 2025. This lawsuit addresses significant concerns regarding Zynex's business practices and the impact these have had on its shareholders.

Allegations Against Zynex

The lawsuit alleges that Zynex, recognized for producing electrotherapy devices aimed at pain management and rehabilitation, misled investors regarding its revenue reporting and overall business operations. According to the filed complaint, there were several key failings in transparency. Firstly, it is claimed that Zynex engaged in the shipment of products—including electrodes—beyond actual demand. This inflated their reported revenue figures. Secondly, this practice reportedly attracted scrutiny from health insurers, including Tricare, further suggesting potential serious repercussions for the company.

These missteps culminated in a financial downturn reflected in Zynex's reports. On March 11, 2025, Zynex announced a staggering revenue shortfall for the fourth quarter of 2024, attributing it to delayed payments from insurers. The revelation of issues with Tricare, the U.S. military's health insurance, related to a temporary suspension of payments while reviewing past claims, led to a dramatic 51.3% drop in Zynex's stock price—plummeting from $7.00 to $3.41 per share.

What Stakeholders Should Consider

Shareholders who hold Zynex stock during the specified period may be eligible to take part in the class action lawsuit. Those interested in becoming lead plaintiffs must file their court documents by May 19, 2025. A lead plaintiff serves as a representative for the rest of the group throughout the legal proceedings. It's crucial to note that if shareholders do not wish to take active participation, they can still remain in the class without further action.

Investors should be aware that representation in the lawsuit is provided on a contingency fee basis. This means that shareholders would incur no legal fees unless they recover losses through the litigation.

Robbins LLP: Advocating for Shareholders

With a rich history dating back to 2002, Robbins LLP is renowned for its commitment to protecting shareholder rights. The firm has concentrated efforts on helping investors recoup losses and improve corporate governance while holding negligent executives accountable for their misdeeds.

To stay informed about the ongoing class action against Zynex, Inc. or to be alerted of any corporate misconduct, interested parties are encouraged to sign up for Stock Watch to receive updates.

For more information or assistance regarding participation in the class action, stakeholders can contact attorney Aaron Dumas, Jr. Alternatively, they can call Robbins LLP directly at (800) 350-6003.

In summary, Zynex, Inc. shareholders should examine their options surrounding the emerging class action, as the implications of the lawsuit could significantly impact their financial interests.

This legal announcement should not be considered investment advice; past results are not indicative of future outcomes.