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  • Professor Andrea M. Armani, University of Southern California
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  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Law Offices of Howard G. Smith Encourages Zynex, Inc. (ZYXI) Investors To Inquire About Securities Fraud Class Action

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Zynex, Inc. (“Zynex” or the “Company”) (NASDAQ: ZYXI) securities between March 13, 2023 and March 11, 2025, inclusive (the “Class Period”). Zynex investors have until May 19, 2025 to file a lead plaintiff motion.

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN ZYNEX, INC. (ZYXI) CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.

What Happened?

On June 4, 2024, medical journal STAT published a report on Zynex entitled “How a device maker inundated pain patients with unwanted batteries and surprise bills.” The report claimed Zynex engaged in an “oversupplying scheme” by sending inordinate amounts of monthly supplies like electrode pads and batteries in order to “bill insurers for thousands of dollars more than it otherwise could.” The report further revealed that, as a result of this practice, insurers were “kicking the company out of network.”

On this news, Zynex’s stock price fell $0.50 per share, or 5%, to close at $9.35 per share on June 4, 2024, on unusually heavy trading volume.

On March 11, 2025, after the market closed, 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.” Zynex further revealed “Tricare has temporarily suspended payments as they review prior claims.” Tricare is the health insurance program for the U.S. military.

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.

What Is The Lawsuit About?

The complaint filed in this class action 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.

Contact Us To Participate or Learn More:

If you purchased Zynex securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Law Offices of Howard G. Smith,

3070 Bristol Pike, Suite 112,

Bensalem, Pennsylvania 19020,

Telephone: (215) 638-4847

Email: howardsmith@howardsmithlaw.com,

Visit our website at: www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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