A securities class action has been filed in the USDC – CO. against Zynex, Inc. (ZYXI) (“Zynex” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Zynex securities between March 13, 2023, and March 11, 2025, both dates inclusive (the “Class Period”).
Zynex is a medical device manufacturer that produces and markets electrotherapy devices for use in pain management and physical rehabilitation. The Company’s products are small, battery powered electronic devices which deliver electric pulses via wires and electrode pads.
The claim arises on March 11, 2025, after the market closed, when Zynex reported its fourth quarter and full year 2024 financial results, revealing a significant revenue “shortfall” in the quarter “due to slower than normal payments from certain payers.”
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
(1) that Zynex shipped products, including electrodes, in excess of need;
(2) that, as a result of this practice, the Company inflated its revenue;
(3) that the Company’s practice of filing false claims drew scrutiny from insurers, including Tricare;
(4) that, as a result, it was reasonably likely that Zynex would face adverse consequences, including removal from insurer networks and penalties from the federal government; and
(5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
On this news, Zynex’s stock price fell $3.59 per share, or 51.3%, to close at $3.41 per share on March 12, 2025, on unusually heavy trading volume.
If you purchased Zynex securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.