Core Viewpoint - A class-action lawsuit has been filed against Zynex, Inc. alleging that the company misled investors by inflating revenue through excessive and unnecessary shipments of medical supplies to patients [1][2][3]. Group 1: Lawsuit Details - The lawsuit, Tuncel v. Zynex, Inc., seeks to represent individuals and entities who purchased Zynex securities between March 13, 2023, and March 11, 2025, with a lead plaintiff deadline of May 19, 2025 [2][3]. - The complaint alleges that Zynex engaged in a scheme to inflate reported revenue by sending more products than medically necessary, which drew scrutiny from insurers like Tricare [3][4]. - Following a report in the medical journal STAT detailing Zynex's alleged oversupplying scheme, the company's stock price fell by over 5% [4]. Group 2: Financial Impact - Zynex disclosed a significant revenue shortfall for Q4 2024, attributing it to slower payments from certain payers, including a temporary suspension of payments from Tricare [5]. - The announcement of the revenue shortfall led to a sharp decline in Zynex's share price, which plummeted by more than 51% [5]. - In Q1 2025, Zynex reported net revenue of $26.6 million, down from $46.5 million in the same period of 2024, with a gross profit margin contracting to 69% from 80% [6]. Group 3: Future Outlook - Zynex has issued a muted revenue guidance of $27 million for Q2 2025 and anticipates an earnings per share (EPS) loss of $0.20, withholding full-year financial guidance due to uncertainty with Tricare [8]. - The CEO of Zynex acknowledged the impact of the Tricare payment suspension on revenue and indicated that the company is initiating a restructuring effort [7].