Zynex Lawsuit Deadline Looms: A Critical Moment for Investors with $100K+ in Losses

The clock is ticking for investors who suffered losses in Zynex, Inc. (NASDAQ: ZYXI). A securities fraud class action lawsuit alleging the company inflated revenue through deceptive practices has reached a pivotal stage, with a May 19, 2025, deadline for shareholders seeking to lead the litigation. Those with losses exceeding $100,000 are particularly urged to act—and the stakes could not be higher.

The Case Against Zynex: Fraudulent Schemes and a Plummeting Stock

At the heart of the lawsuit, captioned Tuncel v. Zynex, Inc., are allegations that the medical device manufacturer systematically overbilled insurers by shipping excessive quantities of disposable supplies, such as electrodes and batteries, to patients. This "oversupplying scheme," as detailed in a June 2024 report by STAT News, artificially inflated revenue by billing insurers for unnecessary supplies.

The fallout was swift and severe. When Zynex disclosed its 2024 financial results on March 11, 2025, it revealed a revenue shortfall and that the U.S. military’s health insurer, Tricare, had suspended payments due to scrutiny over prior claims. The news triggered a 51% single-day stock plunge, dropping shares from $6.70 to $3.28. By May 2025, ZYXI’s stock had plummeted over 85% from its 52-week high of $12.19, now trading at $1.79—a stark reflection of investor trust eroded by alleged fraud.

The Deadline and Investor Rights

The lawsuit, which spans the class period of March 13, 2023, to March 11, 2025, is now in its lead plaintiff phase. To qualify for lead plaintiff status, investors must demonstrate the "greatest financial interest"—typically requiring losses exceeding $100,000. This role carries significant weight, as the lead plaintiff directs the litigation strategy and negotiates settlements on behalf of the class.

Key deadlines and requirements:
- Deadline: May 19, 2025 (no extensions expected).
- Eligibility: Investors who purchased ZYXI shares during the class period and meet the financial threshold.
- Action Steps: Submit a claim via law firms like The Gross Law Firm or Faruqi & Faruqi, which are handling the case.

Why This Matters for Investors—and the Market

The Zynex case underscores a growing legal and financial risk for companies engaging in revenue-inflating tactics. If proven, the allegations could expose Zynex to federal penalties, exclusion from insurer networks, and reputational damage that may be irreversible. For investors, the lawsuit represents both a chance to recover losses and a warning about due diligence in scrutinizing corporate financial disclosures.

The $200 million in investor value erased since early 2024 highlights the scale of the alleged fraud. Meanwhile, Zynex’s market cap, now just $57 million, reflects investor skepticism about its future viability.

Legal Landscape and Potential Outcomes

The lawsuit, filed in the U.S. District Court for the District of Colorado, is backed by multiple high-profile law firms with track records in securities litigation. These include:
- The Rosen Law Firm, which secured the largest-ever recovery against a Chinese company.
- Robbins Geller, known for $2.5 billion in recoveries in 2024 alone.

While outcomes are uncertain, the case’s strength lies in the documented evidence of Zynex’s overbilling practices and Tricare’s suspension of payments—a direct validation of the plaintiffs’ claims.

A Final Warning for Investors

The May 19 deadline is non-negotiable. Shareholders who miss it forfeit their right to lead the lawsuit or participate in potential recoveries. Even those not seeking lead plaintiff status should register to stay informed about case developments.

In an era of heightened scrutiny over corporate transparency, Zynex’s case serves as a cautionary tale. For investors, vigilance—and timely action—is paramount.

Conclusion: Act Now, or Risk Losing Everything

The data paints a clear picture: ZYXI’s stock has been cut by over 85% since early 2024, and the company faces existential risks from legal and regulatory fallout. With the May 19 deadline, investors holding losses above $100,000 have a narrow window to shape the outcome of this case.

The stakes are not just financial but systemic. If Zynex’s practices go unchallenged, it could embolden others to prioritize short-term gains over integrity. For now, the ball is in investors’ courts—will they act, or let this opportunity slip away?

To submit a claim, visit
The Gross Law Firm or
Faruqi & Faruqi.