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Class Action Lawsuit Against Zynex, Inc.

Levi & Korsinsky, LLP has informed shareholders of Zynex, Inc. (NASDAQ: ZYXI) about a recently filed class action securities lawsuit. The lawsuit aims to compensate investors who may have suffered losses due to alleged fraudulent activities surrounding the company’s securities from March 13, 2023, to March 11, 2025. This notification raises significant questions about the company's operational integrity and the practices that led to the lawsuit.

Purpose of the Lawsuit

The central focus of this class action lawsuit is to address the serious allegations of misconduct by Zynex, Inc. The complaint accuses the company of making false claims which misled shareholders and misrepresented its financial health. Specifically, the lawsuit highlights five key grievances against the company:

1. Excess Product Shipment: The complaint alleges that Zynex shipped more products, including electrodes, than could have been reasonably needed. This practice contributed to an artificial inflation of revenue, misleading both investors and analysts about the actual financial state of the company.

2. Inflated Revenues: Linked to the over-shipment issue, there are claims that Zynex exaggerated its financial results to portray a stronger financial position than reality, raising concerns about its revenue recognition practices.

3. Insurance Scrutiny: The lawsuit contends that Zynex's submission of false claims to insurers, including the U.S. military's Tricare program, has resulted in heightened scrutiny from regulatory bodies. This scrutiny poses significant risks to the company's future operations and profitability.

4. Potential Consequences: Given the previously mentioned actions, there is a realistic possibility that Zynex could face serious penalties including expulsion from insurer networks and sanctions from the federal government, potentially leading to decreased operational capacity and profitability.

5. Misleading Statements: Due to the alleged actions, statements made by the defendants about Zynex’s business health were deemed materially misleading or lacking reasonable basis, exacerbating the situation for investors who relied on this information for sound investment decisions.

A Call for Action

If you held shares in Zynex, Inc. during the set timeframe and experienced any form of financial loss, it is crucial to act promptly. Shareholders have until May 19, 2025, to request that the Court appoint them as a lead plaintiff. It’s worth noting that participation in this lawsuit does not require serving as a lead plaintiff in order to potentially recover losses.

Cost-Free Participation

A noteworthy aspect of this class action is that class members may qualify for compensation without any upfront costs or fees. Participants should feel secure in knowing that there are no obligations to contribute financially to engage in this lawsuit, making it an opportunity for affected investors to pursue justice without the burden of litigation costs.

Why Choose Levi & Korsinsky?

Levi & Korsinsky has built a reputation over two decades for defending shareholders' rights, having secured hundreds of millions in compensations for aggrieved investors. With a dedicated team of over 70 employees, the firm has consistently ranked among the top securities mediation firms in the United States for effective legal representation in high-stakes lawsuits.

Contact Information

For further information or questions, affected investors can reach out directly to:

• - Joseph E. Levi, Esq.
• - Email: jlevi@zlk.com
• - Phone: (212) 363-7500

The firm is situated at 33 Whitehall Street, 17th Floor, New York, NY 10004.

Conclusion

This ongoing class action against Zynex, Inc. underscores the pivotal role of corporate transparency and accountability in maintaining investor trust and market integrity. Shareholders must act promptly to safeguard their rights in light of the unfolding legal developments surrounding this case.