#United States #New York #Securities Class Action #Faruqi & Faruqi #Zynex

Attention Zynex Investors

Legal Reminder from Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a leading national securities law firm, has officially alerted shareholders of Zynex, Inc. (OTCPK: ZYXIQ) regarding the pressing deadline for participating in a securities class action lawsuit set for April 21, 2026. This lawsuit arises from significant allegations against Zynex, asserting that the company engaged in practices that potentially misled investors and inflated revenue figures.

Details of the Allegations

The allegations against Zynex encompass several serious claims, including but not limited to:

• - Inflated Product Shipping: The company allegedly shipped products, like electrodes, in greater quantities than necessary, leading to deceptive revenue figures.
• - False Claims Investigations: As a result of these practices, Zynex drew scrutiny from major insurers, especially Tricare, which has halted payments while reviewing past claims.
• - Fraudulent Overbilling Scheme: There is a pending legal action initiated by Travelers, claiming Zynex, along with other executives, engaged in a fraudulent overbilling scheme that seeks damages exceeding $23 million.
• - Regulatory Non-Compliance: Following internal evaluations, Zynex admitted it was not compliant with industry regulations, which has led to severe consequences, including the reevaluation of its authority to bill certain insurers.

Impact on Stock Price

The repercussions of these allegations became evident during the financial disclosures for the fourth quarter and full year of 2024, where Zynex reported a significant revenue shortfall attributed to slow payments from insurers. Notably, upon these disclosures, Zynex’s stock plummeted by over 51% in a single trading day, showcasing the immediate impact of these revelations on investor confidence.

Call to Action for Shareholders

Investor and securities litigation partner, James (Josh) Wilson, is encouraging affected shareholders who acquired Zynex securities between February 25, 2021, and December 15, 2025, to reach out to Faruqi & Faruqi. This is crucial for those wishing to discuss their legal options regarding the current situation.

Faruqi & Faruqi's extensive experience in securities litigation highlights their commitment to fighting for investor rights and obtaining justice for losses incurred due to misleading corporate conduct.

How to Proceed

Interested shareholders should act promptly to ensure they do not miss the opportunity to be involved as either lead plaintiffs or as part of the class in the ongoing lawsuit. Those who believe they have relevant information about Zynex’s conduct, including past employees or whistleblowers, are also encouraged to share their insights with the firm.

Contact Information

To discuss your potential claims or further inquiries about the class action against Zynex, investors may contact Faruqi & Faruqi directly at 877-247-4292 or visit their website for more detailed guidance.

As we move towards the deadline, it is pivotal that all interested parties remain informed and proactive in safeguarding their investments in Zynex, Inc.