ZYXI Investors Can Lead in Landmark Securities Fraud Lawsuit Against Zynex, Inc.

The opportunity for Zynex, Inc. (NASDAQ: ZYXI) investors to join or lead a high-stakes securities fraud lawsuit is now within reach. With a critical deadline looming and allegations of financial misconduct at the core of this case, investors who acted during the Class Period (March 13, 2023, to March 11, 2025) may be eligible to recover losses tied to the company’s alleged over-supplying scheme and hidden risks. Here’s what you need to know—and why acting swiftly matters.

The Allegations Against Zynex, Inc.

At the heart of the lawsuit is a claim that Zynex and its executives inflated revenue by shipping excessive medical supplies—such as electrodes and batteries—to patients, far beyond their needs. This practice, paired with misleading statements about the company’s financial health, allegedly misled investors. Key accusations include:
- Revenue Manipulation: Artificially boosting revenue by over-supplying insurers.
- Insurance Scrutiny: Concealing scrutiny from major insurers like Tricare, which later suspended payments.
- False Optimism: Issuing overly positive statements about business prospects while hiding looming penalties and network exclusions.

The lawsuit, rooted in federal securities laws, alleges these actions violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

The stock’s trajectory underscores the severity of the allegations. After a STAT report exposed the over-supplying scheme in June 2024, shares dropped 5% to $9.35. The final trigger came on March 12, 2025, when Zynex revealed a massive revenue shortfall, causing the stock to plummet 51.3% to $3.41—a stark visual of investor confidence collapsing.

Investor Opportunities and Deadlines

The lawsuit offers two key pathways for investors:

1. Class Action Participation:
   Investors who bought ZYXI securities during the Class Period may qualify for compensation. No upfront fees are required, as law firms operate on a contingency basis.

2. Lead Plaintiff Status:
   To be considered for lead plaintiff—a role that involves representing the class—you must file a motion by May 19, 2025. This deadline is non-negotiable, as the court will not extend it.

Law Firms Leading the Charge

Three prominent firms are handling the case, each with notable track records:
- Rosen Law Firm: Specializes in large-scale recoveries, including a $438 million settlement in 2019. Contact: Phillip Kim at 866-767-3653 or
rosenlegal.com.
- Faruqi & Faruqi, LLP: Recovered hundreds of millions for investors since 1995. Contact: Josh Wilson at 877-247-4292 or
faruqilaw.com.
- Bronstein, Gewirtz & Grossman, LLC: Focuses on securities fraud with a history of high-profile settlements. Contact: Peretz Bronstein at 646-697-6607 or
bgandg.com.

The data paints a clear picture: The stock’s post-report declines align with the timeline of revelations. Investors who held ZYXI during the Class Period could face significant losses, making this lawsuit a critical avenue for redress.

Why This Lawsuit Matters

The stakes are high for multiple reasons:
1. Financial Impact: The 51.3% drop in March .25 alone erased over $100 million in market capitalization. Investors who held ZYXI during this period may be entitled to recover a portion of those losses.
2. Legal Precedent: The case could set a standard for how companies disclose billing practices and insurer scrutiny.
3. Firm Experience: The law firms involved have a proven record. For instance, Rosen’s 2019 settlement—then the largest ever against a Chinese company—demonstrates their ability to secure substantial recoveries.

This data underscores the firm’s credibility, which is critical for investors seeking a credible path to recovery.

Conclusion: Act Now or Risk Missing Out

The Zynex lawsuit represents a rare opportunity for investors to hold a company accountable for alleged fraud. With the May 19 deadline for lead plaintiff motions, there is little time to waste. Key takeaways:
- Urgency: Missing the deadline forfeits your chance to lead the case or influence its direction.
- Track Record: The law firms involved have recovered billions for investors, increasing the likelihood of a meaningful settlement.
- Market Impact: ZYXI’s stock price crash—over 50% in a single day—provides clear evidence of the harm caused by the alleged misconduct.

For investors who acted during the Class Period, this is not just a legal battle but a chance to reclaim value lost due to corporate deception. Contact a qualified firm today to explore your options—and ensure you don’t miss this critical window for justice.