Zynex, Inc.

Case Overview
26 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 05/19/2025 |
Status: | Status: Investigating |
Company Name: | Company Name: Zynex, Inc. |
Court: | Court: District of Colorado |
Case Number: | Case Number: 1:25cv00913 |
Class Period: | Class Period: 03/13/2023 - 03/11/2025 |
Ticker: | Ticker: ZYXI |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Colorado on behalf of those who acquired Zynex, Inc. (“Zynex” or the “Company”) (NASDAQ:ZYXI) securities during the period from March 13, 2023, through March 11, 2025 (“the Class Period”). Investors have until May 19, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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 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, the price of Zynex shares declined by $0.50 per share, from $9.85 per share on June 3, 2024, to close at $9.35 on June 4, 2024.
Then, on March 11, 2025, 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 and currently represents approximately 20-25% of Zynex’s revenue. On this news, the price of Zynex fell by $3.53 per share, or approximately 50%, from $7.00 per share on March 11, 2025, to close at $3.14 on March 12, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (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; and (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.
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 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, the price of Zynex shares declined by $0.50 per share, from $9.85 per share on June 3, 2024, to close at $9.35 on June 4, 2024.
Then, on March 11, 2025, 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 and currently represents approximately 20-25% of Zynex’s revenue. On this news, the price of Zynex fell by $3.53 per share, or approximately 50%, from $7.00 per share on March 11, 2025, to close at $3.14 on March 12, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (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; and (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.