Zynex Investors Face Crucial Deadline in Landmark Securities Lawsuit

The recent surge in attention around Zynex, Inc. (NASDAQ: ZYXI) stems not from innovation or growth but from allegations of financial fraud that have sparked a high-stakes securities class action lawsuit. As the May 19, 2025, deadline for investors to seek lead plaintiff status approaches, the stakes are mounting for shareholders who lost money due to the company’s alleged misconduct.

The Allegations: A Scheme to Inflate Revenue

The lawsuit, Tuncel v. Zynex, Inc., accuses the company of engaging in an “oversupplying scheme” to artificially boost revenue by shipping excessive quantities of medical devices—such as electrodes and batteries—to patients. These devices were billed to insurers, including Tricare (which accounts for 20–25% of Zynex’s revenue), even though the supplies far exceeded clinical needs. The practice, detailed in a June 2024 STAT report, allegedly allowed Zynex to inflate revenue figures by billing for unnecessary supplies.

When this misconduct came to light, ZYXI’s stock price dropped 5% in June 2024. The final blow came on March 11, 2025, when Zynex disclosed a 43% year-over-year revenue decline and Tricare’s suspension of payments. The revelation triggered a catastrophic 51% stock price drop, erasing billions in market value.

The Legal Landscape: Rosen Law Firm and Key Firms in the Spotlight

While the lawsuit was initially filed by Hagens Berman, multiple top-tier law firms are now representing investors, including Rosen Law Firm, Robbins Geller, and Levi & Korsinsky. Each firm emphasizes its track record in recovering billions for shareholders:

• Rosen Law Firm: Specializes in global investor rights, with over $400 million recovered in recent years. They urge Zynex investors to act by May 19 to secure lead plaintiff status.
• Robbins Geller: Known for landmark wins like the $7.2 billion Enron settlement, they highlight Zynex’s failure to disclose Tricare risks.
• Levi & Korsinsky: Ranked in ISS’s Top 50 securities firms, they focus on Zynex’s misleading revenue recognition practices.

The Financial Toll: A 51% Stock Plunge and Operational Collapse

Zynex’s Q1 2025 financials underscore the severity of the crisis:
- Revenue: Fell to $26.6 million, down from $46.5 million in Q1 2024.
- Gross Profit Margin: Slumped to 69% (from 80% in 2024).
- Adjusted EBITDA: Turned to a loss of $11.8 million (vs. $1.7 million profit in 2024).

The company’s CEO, Thomas Sandgaard, admitted the revenue shortfall was driven by Tricare’s suspension of payments. Analysts now question Zynex’s ability to rebound given its reliance on a single insurer and regulatory scrutiny.

Why the May 19 Deadline Matters

Investors who purchased ZYXI shares between March 13, 2023, and March 11, 2025, may qualify for compensation. However, the May 19 deadline is critical:
- Lead Plaintiff Role: Only investors who file motions by this date can serve as lead plaintiff, directing the lawsuit.
- Class Certification: No recovery is guaranteed until a class is certified, but acting early ensures eligibility.
- No Upfront Costs: All major firms operate on a contingency basis, meaning investors pay nothing unless a settlement is reached.

The Bottom Line: Risks and Opportunities for Investors

Zynex’s story is a cautionary tale of corporate overreach and the consequences of financial misstatements. With the stock down 51% since March 2024, shareholders face significant losses. While the lawsuit offers a path to recovery, delays in legal action could reduce the chances of a favorable outcome.

Conclusion: Act Now or Risk Missing Out

The evidence is clear: Zynex’s alleged misconduct inflated its stock price artificially, and the truth has now caused a catastrophic collapse. With $26.6 million in Q1 revenue and a 51% stock drop, investors cannot afford to ignore the May 19 deadline.

• Deadline Action: Contact Rosen Law Firm, Robbins Geller, or Levi & Korsinsky by May 19 to secure representation.
• Data-Driven Risks: ZYXI’s revenue has halved, and its margin contraction suggests long-term instability.
• Historical Precedent: Firms like Robbins Geller have recovered billions in similar cases, but only active participation ensures eligibility.

Investors holding ZYXI must act swiftly—not only to recover losses but to hold Zynex accountable for alleged fraud. The clock is ticking.

For further analysis, review ZYXI’s quarterly filings and the complaint’s detailed allegations at the U.S. District Court for the District of Colorado.