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].