Zynex (ZYXI) Investors Urged to Act Before May 19 Deadline in Class Action Lawsuit

Investors in Zynex, Inc. (NASDAQ: ZYXI) are reminded of a critical upcoming deadline tied to a securities class action lawsuit. With the court’s May 19, 2025, motion deadline for lead plaintiff designation fast approaching, shareholders who purchased ZYXI shares during the March 13, 2023, to March 11, 2025, period are urged to act swiftly to preserve their rights. The lawsuit, led by prominent law firms, alleges material misstatements and fraudulent practices by Zynex and its executives, with potential implications for investor recoveries.

The Allegations: A Scheme to Inflate Revenue

The lawsuit centers on claims that Zynex engaged in deceptive practices to artificially boost revenue. Key accusations include:
1. Oversupplying Products: The company allegedly shipped excessive quantities of medical supplies—such as electrodes and batteries—to patients, enabling inflated billing to insurers like Tricare.
2. False Claims and Regulatory Risks: Zynex is accused of concealing these practices while making misleading statements about its financial health and compliance with regulatory standards.
3. Material Omissions: Executives failed to disclose the heightened scrutiny from insurers and the likelihood of adverse outcomes, such as payment suspensions or federal penalties.

Triggering Events: A Stock Price Collapse

Two pivotal events exposed the truth and triggered significant market reactions:
- June 4, 2024: A STAT news report revealed Zynex’s “oversupplying scheme,” causing shares to drop 5% to $9.35.
- March 11, 2025: Zynex announced a revenue shortfall and Tricare’s suspension of payments, leading to a catastrophic 51.3% plunge in its stock price (from $7.30 to $3.41).

Legal Proceedings and Investor Implications

The case, Tuncel v. Zynex, Inc., is being pursued by firms including Robbins Geller Rudman & Dowd LLP and Faruqi & Faruqi LLP, which collectively have recovered billions for investors. The lawsuit alleges violations of the Securities Exchange Act of 1934, specifically Sections 10(b) and 20(a).

Investors with losses exceeding $75,000 may qualify for compensation if the case succeeds. Those seeking to join or lead the lawsuit must file motions by May 19, 2025. Lead plaintiff selection prioritizes investors with the largest financial interests, but participation in any recovery does not require serving in this role.

Why This Matters to Shareholders

Zynex’s reliance on insurer reimbursements—particularly Tricare, which accounted for a significant portion of its revenue—heightened the risks of its alleged practices. Once insurers began investigating, the market swiftly reacted, erasing billions in shareholder value. For context, ZYXI’s stock has lost over 50% of its value since March 2023, per the data visualization above.

Conclusion: Act Before the Deadline

The evidence presented—material misstatements, regulatory scrutiny, and drastic stock declines—paints a clear picture of systemic fraud. With Zynex’s stock now trading at near-record lows and insurers like Tricare taking action, the case’s outcome could determine whether investors recover losses.

Given the law firms’ track records—Robbins Geller alone recovered over $2.5 billion in 2024—and the sheer scale of the alleged misconduct, eligible investors should act promptly. Failing to meet the May 19 deadline could permanently forfeit their right to participate in any settlement or judgment.

Investors are advised to contact the listed law firms for guidance. The clock is ticking.

Data sources: SEC filings, class action complaint, and third-party financial reports.