Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Zynex, Inc. due to a class action complaint alleging breaches of fiduciary duties by the board of directors [1] Company Overview - Zynex, Inc. is facing scrutiny for allegedly inflating its stock price through false and misleading statements regarding its financial performance and operational practices [6] - The company reportedly engaged in a systemic "oversupplying scheme," shipping excessive quantities of supplies and billing insurers for inflated amounts [6] Financial Impact - The misconduct was revealed on March 11, 2025, when Zynex announced a significant revenue shortfall attributed to slower payments from insurers, particularly Tricare, which accounts for 20-25% of its annual revenue [6] - Following the announcement, Zynex's stock price dropped by $3.59 per share, or 51.3%, closing at $3.41 per share, resulting in a substantial loss of shareholder value [6]

Core Viewpoint - The Portnoy Law Firm has initiated an investigation into Zynex, Inc. for possible securities fraud, potentially leading to a class action lawsuit for investors who suffered losses [1][3]. Company Overview - Zynex, Inc. is under scrutiny for allegedly inflating its stock price through false statements regarding its financial performance and operational practices [3]. - The company is accused of a systemic "oversupplying scheme," where excessive quantities of medical supplies were shipped to patients, leading to inflated billing to insurers [3]. Financial Impact - A significant revenue shortfall was disclosed in Zynex's fourth-quarter and full-year 2024 results, attributed to slower payments from certain payers, including a temporary suspension of payments from Tricare [4]. - Tricare, which accounted for approximately 20% to 25% of Zynex's annual revenue, is reviewing prior claims, raising concerns about the company's financial stability [4]. Market Reaction - Following the disclosure of these issues, Zynex's stock price plummeted by $3.59 per share, or 51.3%, closing at $3.41 per share, indicating a severe loss of shareholder value [5].

Core Viewpoint - Zynex, Inc. is under investigation for potential claims related to a class action complaint alleging that the company's board of directors breached their fiduciary duties by misleading investors about financial performance and operational practices [1][2]. Summary by Relevant Sections Allegations of Misconduct - The complaint claims that Zynex's management engaged in practices that artificially inflated the company's stock price through false statements regarding financial performance and compliance with insurance reimbursement policies [2]. - It is alleged that Zynex operated a systemic "oversupplying scheme," shipping excessive quantities of supplies to patients and billing insurers significantly more than necessary [2]. Financial Impact and Regulatory Scrutiny - The extent of Zynex's misconduct was revealed on March 11, 2025, when the company announced a revenue shortfall due to slower payments from insurers, particularly Tricare, which accounted for 20-25% of its annual revenue [3]. - Following the announcement, Zynex's stock price fell by $3.59 per share, or 51.3%, closing at $3.41 per share, indicating a severe loss of shareholder value and highlighting the company's exposure to regulatory and financial risks [4].

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].

Core Viewpoint - Zynex, Inc. is facing a class action lawsuit due to allegations of misleading statements and improper business practices that have led to significant financial losses for investors during the specified class period [3][4][5]. Group 1: Allegations and Lawsuit Details - The class action lawsuit claims that Zynex shipped medical products in quantities exceeding patient needs, resulting in inflated revenue figures [3]. - The lawsuit highlights that Zynex's practices attracted scrutiny from insurers, including Tricare, which could lead to negative consequences such as exclusion from insurer networks and potential penalties from federal agencies [3]. - A report published by STAT accused Zynex of operating an "oversupplying scheme," sending excessive quantities of supplies to bill insurers unjustifiably, which contributed to a decline in Zynex's stock price by over 5% following its release [4]. Group 2: Financial Impact - On March 11, 2025, Zynex announced a revenue shortfall for Q4 and full year 2024, attributing it to slower payments from certain payers, which included a temporary suspension of payments from Tricare pending a review of previous claims [5]. - Following the announcement of the revenue shortfall, Zynex's stock price plummeted by more than 51% [5].

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Zynex To Contact Him Directly To Discuss Their OptionsIf you purchased or acquired securities in Zynex between March 13, 2023 and March 11, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).[You may also click here for additional information]NEW YORK, April 10, 2025 /PRNewswire/ -- Faruqi & Faruqi, LLP ...