Zynex(US:ZYXI) TMX Newsfile·2026-03-14 11:24Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Zynex, Inc. due to allegations of securities law violations, encouraging affected investors to contact the firm directly [2][4]. Group 1: Allegations Against Zynex - The complaint alleges that Zynex and its executives made false and misleading statements, including shipping products in excess of need, which inflated revenue [4]. - It is claimed that Zynex's practice of filing false claims attracted scrutiny from insurers, particularly Tricare, which is Zynex's largest customer, accounting for 20-25% of revenue [4][5]. - The lawsuit indicates that Zynex's aggressive sales strategies prioritized order growth over compliance with industry regulations, leading to potential adverse consequences such as removal from insurer networks [4]. Group 2: Financial Impact and Stock Performance - On March 11, 2025, Zynex reported a significant revenue shortfall due to slower payments from payers, with Tricare temporarily suspending payments for claim reviews [5]. - Following this news, Zynex's stock price fell by $3.59 per share, or 51.3%, closing at $3.41 per share on March 12, 2025 [6]. - On July 31, 2025, Zynex acknowledged non-compliance with industry regulations and announced a leadership change, which led to a further decline in stock price from $2.23 to $1.26 per share, a 45% drop [7][8].