Pomerantz Law Firm Issues Investor Alert for Zynex, Inc. Class Action Lawsuit

Investor Alert: Class Action Lawsuit Against Zynex, Inc.

On April 22, 2025, Pomerantz LLP, a distinguished law firm, issued an alert regarding a recently filed class action lawsuit against Zynex, Inc. (NASDAQ: ZYXI). This lawsuit has been initiated to address allegations of securities fraud and other unlawful business activities purportedly conducted by Zynex and some of its executives. Investors who have experienced financial losses tied to Zynex are encouraged to make contact with Danielle Peyton at Pomerantz for further information.

Understanding the Allegations

The class action lawsuit revolves around potential fraudulent practices by Zynex, a company known for its medical devices. A significant report published by the medical journal STAT on June 4, 2024, revealed disturbing insights into Zynex’s operations. This report accused the company of engaging in an “oversupplying scheme,” where an excessive number of medical supplies, such as electrode pads and batteries, were sent to patients. The goal of this practice was allegedly to inflate billing submissions to insurers and maximize revenue significantly. Consequently, insurers began suspending Zynex from their networks in reaction to these practices.

Following the release of this information, Zynex saw its stock price decrease by $0.50 per share, translating to a decline of 5% on the very same day. This was just a precursor to the steep decline that followed tighter scrutiny of the company’s financial practices.

Financial Disclosures Creating Turmoil

The situation worsened on March 11, 2025, when Zynex unveiled its financial results for the fourth quarter of 2024. The firm reported a revenue shortfall, drawing attention to delayed payments from several payers, including Tricare. This healthcare system, which covers service members and their families, accounts for an estimated 20-25% of Zynex's annual revenue. The temporary suspension of payments by Tricare evoked further alarm, leading to a catastrophic drop in Zynex's stock price, which fell by $3.59 per share, or over 51%, on March 12, 2025.

These sagging financial results and the revelations of possible deceptive practices led to mounting pressures on Zynex, prompting Pomerantz to act on behalf of the affected investors.

Your Rights as an Investor

If you acquired Zynex securities during the designated Class Period, you have until May 19, 2025, to petition the court to be appointed as the Lead Plaintiff for the class. This could be an important opportunity to gain some compensation should the case favor the plaintiffs. Interested parties can acquire a copy of the complaint through Pomerantz’s website or contact the firm’s representatives for further instructions on involvement.

Pomerantz LLP, with operations in major cities across the globe, is recognized as a leader in corporate and securities class action litigation. Established by Abraham L. Pomerantz, known as a pioneer in the field, the firm has a long history of advocating for victims of securities fraud and corporate misconduct.

Conclusion

As this class action lawsuit unfolds, investors should stay informed about the legal proceedings and consider joining the suit to protect their interests. The financial implications of this case could be vast, and taking action swiftly could be crucial in pursuing justice and potential recovery of losses.

For more detailed information or to register as a potential class member, please visit Pomerantz's official website or reach out to Danielle Peyton at 646-581-9980, ext. 7980, or via email.