Faruqi & Faruqi Alerts Zynex Investors About Class Action Deadline Approaching in May 2025

Recent Developments in Zynex Class Action Lawsuit

In a notable announcement on May 16, 2025, Faruqi & Faruqi, LLP, a prominent national securities law firm, has alerted investors about potential claims against Zynex, Inc. This communication stresses the urgency for investors to consider their legal options related to a class action lawsuit with a lead plaintiff deadline set for May 19, 2025.

Faruqi & Faruqi is currently investigating Zynex, a medical technology firm specializing in pain management devices, under NASDAQ ticker ZYXI. The lawsuit stems from allegations that the company and its executives engaged in practices that may have violated federal securities laws by making misleading statements and failing to disclose critical information. Specifically, the firm is accused of oversupplying medical products, thereby inflating revenue expectations.

Allegations Against Zynex

According to the legal claims, Zynex shipped more products than necessary, such as electrodes, which contributed to inflated revenues reported by the company. The allegations further state that Zynex’s practices have caught the attention of various insurers, including Tricare, which provides health insurance for military personnel. The scrutiny over Zynex’s claims has resulted in the potential for severe penalties, including exclusion from insurer networks and government sanctions.

A significant report published in the medical journal STAT on June 4, 2024, accused Zynex of employing an “oversupplying scheme” that allegedly manipulated billing practices at the expense of patients and insurers. After the publication of this report, Zynex’s stock price saw a marked decrease, indicating investor concern regarding the company’s future prospects.

In the latest quarterly report released on March 11, 2025, Zynex disclosed a dramatic revenue shortfall attributed to delayed payments from insurance providers. In addition, the company revealed that Tricare had temporarily halted payments as it reviews previous claims, which led to another significant plunge in Zynex's stock price during heavy trading.

Call to Affected Investors

Faruqi & Faruqi’s partner, James (Josh) Wilson, has reached out to investors who have experienced losses exceeding $75,000 between March 13, 2023, and March 11, 2025. The firm encourages these investors to engage in discussions about their options regarding participation in the class action. Interested parties can reach out directly via phone for more information.

The role of the lead plaintiff is pivotal in such legal proceedings. The lead plaintiff is typically the investor who has sustained the largest financial loss and is deemed to represent the interests of all class members effectively. Those wishing to serve in this capacity will need to act quickly and may seek legal counsel to navigate this process.

Conclusion

As the deadline approaches on May 19, 2025, Zynex investors are urged to consider their rights and potential claims. Understanding the implications of the allegations and engaging with legal counsel can be crucial in determining their next steps. Faruqi & Faruqi is committed to supporting investors during this challenging time and invites anyone with pertinent information about Zynex to come forward.

For further details, visit Faruqi & Faruqi's website or contact their office directly.