Zynex, Inc. Faces Class Action Lawsuit Amid Allegations of Fraud and Misconduct

Investor Alert: Zynex, Inc. Class Action Lawsuit

On April 28, 2025, Pomerantz LLP announced a significant legal development affecting investors of Zynex, Inc. The firm has initiated a class action lawsuit against the company, which trades under the NASDAQ symbol ZYXI. The lawsuit concerns claims of securities fraud and other illegal business practices purportedly involving Zynex and some of its senior executives and directors.

Background on the Allegations

The allegations against Zynex are serious, centering around potential fraudulent activities that could have misled investors regarding the company’s financial health. The lawsuit provides an opportunity for affected investors to join the case. Interested individuals can reach out to Pomerantz for more details, including specifics on how to participate in the legal action.

A troubling report published in the medical journal STAT on June 4, 2024, has ignited concerns and led to scrutiny of Zynex's business practices. The report accused the company of engaging in an "oversupplying scheme," wherein Zynex was alleged to have flooded pain management patients with excessive monthly supplies of products like batteries and electrode pads. This was purportedly done to inflate billing amounts to insurers, leading to accusations of pushing insurance companies out of network due to excessive claims.

Following the release of this damaging report, Zynex saw a drop in its stock value. The price declined by 5% on the same day, descending to $9.35 per share.

Financial Struggles and Stock Declines

The situation worsened for Zynex on March 11, 2025, when the company released its fourth-quarter financial results for 2024, revealing a shortfall in revenue. The decline was attributed to sluggish payment cycles from certain payers, compounded by Tricare—a major healthcare program for military families—temporarily suspending payments while it reviewed the claims. This contributed to a staggering 51.3% plunge in Zynex's stock price, which fell from $6.96 per share to just $3.41 on March 12, 2025.

The Role of Pomerantz LLP

Pomerantz LLP, a well-respected law firm with a robust reputation for handling securities lawsuits, is spearheading this class action on behalf of affected investors. With more than 85 years in operation, the firm has a history of fighting for investors' rights against corporate misconduct. The firm encourages anyone who has purchased Zynex securities during the class period to come forward by the May 19, 2025 deadline to have their voices heard in court.

For those interested in becoming involved or who seek further information regarding the complaint, they can access the details on Pomerantz’s website. The firm’s dedication to championing investor rights remains firm as they prepare to battle these allegations in an effort to achieve justice for those impacted.

How to Get Involved

Investors who suffered losses related to Zynex can contact Danielle Peyton at Pomerantz for guidance. It's essential for affected parties to not miss the deadline to potentially serve as lead plaintiffs, thus influencing the course of this significant legal proceeding.

In summary, the ongoing legal situation surrounding Zynex, Inc. highlights the risks inherent in investing, particularly in companies facing allegations of misconduct. As the class action unfolds, interested parties should remain informed of their rights and the developments of this case.