Zynex(US:ZYXI) Globenewswire·2026-02-27 13:00Core Viewpoint - A class action lawsuit has been filed against Zynex, Inc. for allegedly misleading investors regarding its business practices and financial performance during the specified period [1][2]. Allegations - Zynex allegedly shipped products in excess of need, inflating its revenue [2] - The company faced scrutiny from insurers, including Tricare, due to its practice of filing false claims [2] - A lawsuit was initiated by Travelers against Zynex and its executives, seeking over $23 million in damages related to fraudulent claims from 2018 to 2023 [2] - Management prioritized aggressive sales strategies over compliance with industry regulations [2] - The company's order growth was reportedly a result of illegal overbilling practices [2] - There is a likelihood of adverse consequences for Zynex, including removal from insurer networks and federal penalties [2] Financial Performance - On March 11, 2025, Zynex reported a significant revenue shortfall due to slower payments from payers, particularly Tricare, which accounts for 20-25% of its revenue [3] - Following this news, Zynex's stock price dropped by $3.59 per share, or 51.3%, closing at $3.41 on March 12, 2025 [3] - On July 31, 2025, Zynex acknowledged non-compliance with industry regulations, leading to a further decline in stock price from $2.23 to $1.26 per share, a 45% drop [3] Class Action Participation - Shareholders wishing to serve as lead plaintiffs must submit their papers by April 21, 2026 [4] - Participation in the case is not required to be eligible for recovery [4]