Zynex(US:ZYXI) TMX Newsfile·2026-03-07 15:59Core 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 federal class action by April 21, 2026 [2]. 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 shipping excess products, which inflated revenue [4]. - Zynex's practices drew scrutiny from insurers, particularly Tricare, which is the company's largest customer, accounting for 20-25% of revenue [5][4]. - A lawsuit filed by Travelers against Zynex and its executives claims over $23 million in damages related to fraudulent billing practices from 2018 to 2023 [4]. 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 on March 12, 2025 [5][6]. - Following the acknowledgment of non-compliance with industry regulations on July 31, 2025, Zynex's stock fell from $2.23 to $1.26 per share, a 45% decline [7][8]. Group 3: Legal Proceedings and Investor Actions - Investors who purchased Zynex securities between February 25, 2021, and December 15, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights [1]. - The role of lead plaintiff in the class action is open to any member of the putative class, with the ability to direct and oversee the litigation [9].