Zynex(US:ZYXI) Prnewswire·2025-04-10 14:20Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Zynex, Inc. due to allegations of securities law violations, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by May 19, 2025 [2][4]. Group 1: Allegations Against Zynex - The complaint alleges that Zynex and its executives made false or misleading statements and failed to disclose critical information, including the shipment of excess products, which inflated revenue [4]. - It is claimed that Zynex's practices drew scrutiny from insurers, including Tricare, leading to potential adverse consequences such as removal from insurer networks and federal penalties [4]. - A report published by medical journal STAT accused Zynex of an "oversupplying scheme," resulting in insurers excluding the company from their networks [5]. Group 2: Financial Impact - Following the publication of the STAT report, Zynex's stock price fell by $0.50 per share, or 5%, closing at $9.35 on June 4, 2024, amid heavy trading volume [5]. - On March 11, 2025, Zynex reported a significant revenue shortfall for Q4 2024, attributing it to slower payments from certain payers, with Tricare temporarily suspending payments for review [6]. - The announcement of the revenue shortfall led to a dramatic decline in Zynex's stock price, which fell by $3.59 per share, or 51.3%, closing at $3.41 on March 12, 2025 [7].