Zynex, Inc. Investors: Company Investigated by the Portnoy Law Firm

Core Viewpoint - The Portnoy Law Firm has initiated an investigation into Zynex, Inc. for possible securities fraud, potentially leading to a class action lawsuit for investors who suffered losses [1][3]. Company Overview - Zynex, Inc. is under scrutiny for allegedly inflating its stock price through false statements regarding its financial performance and operational practices [3]. - The company is accused of a systemic "oversupplying scheme," where excessive quantities of medical supplies were shipped to patients, leading to inflated billing to insurers [3]. Financial Impact - A significant revenue shortfall was disclosed in Zynex's fourth-quarter and full-year 2024 results, attributed to slower payments from certain payers, including a temporary suspension of payments from Tricare [4]. - Tricare, which accounted for approximately 20% to 25% of Zynex's annual revenue, is reviewing prior claims, raising concerns about the company's financial stability [4]. Market Reaction - Following the disclosure of these issues, Zynex's stock price plummeted by $3.59 per share, or 51.3%, closing at $3.41 per share, indicating a severe loss of shareholder value [5].