Zynex(US:ZYXI) Prnewswire·2026-02-26 14:30Core Viewpoint - The article discusses a securities class action against Zynex, Inc. due to allegations of false and misleading statements regarding the company's business practices and financial reporting, with a deadline for investors to seek lead plaintiff status set for April 21, 2026 [1]. Group 1: Allegations Against Zynex - Zynex allegedly shipped products in excess of need, inflating its revenue [1][2] - The company faced scrutiny from insurers, including Tricare, for filing false claims [1][2] - A lawsuit was filed by Travelers against Zynex and its executives, seeking over $23 million in damages for fraudulent claims between 2018 and 2023 [1][2] - Management prioritized aggressive sales strategies over compliance with industry regulations [1][2] - The company was not committed to maintaining a strong internal control environment [1][2] - Order growth was attributed to illegal overbilling practices [1][2] - There is a reasonable likelihood of adverse consequences for Zynex, including removal from insurer networks and federal penalties [1][2] - Positive statements made by the defendants about the company's operations were materially misleading [1][2] Group 2: Financial Impact and Stock Performance - On March 11, 2025, Zynex reported a significant revenue shortfall due to slower payments from payers, leading to a stock price drop of $3.59 per share, or 51.3%, closing at $3.41 per share [1][2] - On July 31, 2025, Zynex acknowledged non-compliance with industry regulations, resulting in a stock decline from $2.23 per share to $1.26 per share, a 45% drop [1][2] Group 3: Legal Proceedings and Investor Actions - The court-appointed lead plaintiff will be the investor with the largest financial interest who directs the litigation on behalf of the class [1][2] - Any member of the class may move to serve as lead plaintiff or remain an absent class member without affecting their ability to share in any recovery [1][2] - Faruqi & Faruqi, LLP encourages individuals with information regarding Zynex's conduct to come forward [1][2]