Zynex faces class action lawsuit following major revenue shortfall announcement
- Zynex, Inc. reported a significant revenue shortfall due to slower-than-normal payments from payers.
- The company cited that Tricare suspended payments while reviewing prior claims, raising red flags for investors.
- Two law firms have initiated class action lawsuits, urging affected investors to take action by the upcoming deadline.
On March 11, 2025, Zynex, Inc., a medical device manufacturer located in the United States, disclosed its fourth quarter and full year financial results, revealing a significant revenue shortfall. The financial results indicated slower-than-normal payments from several payers, which raised concerns among investors. Particularly concerning was the announcement that Tricare, the U.S. military's health insurance program, had temporarily suspended payments while reviewing prior claims associated with the company's practices. The combination of these factors led to a drastic drop in the company's stock price, which fell over 51% within just one day, closing at $3.41 per share on March 12, 2025. This decline occurred following a heavy trading volume that hinted at considerable market anxiety about Zynex's future performance. In light of these events, two law firms, Faruqi & Faruqi, LLP and Kaplan Fox & Kilsheimer LLP, both based in the United States, have announced the filing or pending filing of class action lawsuits against Zynex. They are calling on investors who experienced losses exceeding $75,000 during the class period from March 13, 2023, to March 11, 2025, to consider joining the lawsuit, as the May 19, 2025 deadline approaches for seeking lead plaintiff status. The allegations against Zynex include claims that the company engaged in misleading practices regarding its revenue reporting and product shipping practices, which purportedly drew scrutiny from insurers and federal authorities. These lawsuits underscore a broader issue of accountability for public companies and the implications of their financial practices on investor trust and market integrity. As investigations into Zynex’s conduct continue, the outcomes of these lawsuits could significantly impact the company’s reputation, financial stability, and operations moving forward. The necessity for regulatory compliance and ethical business practices is now more pronounced than ever, especially for companies operating in sensitive sectors such as healthcare, where public interest is particularly high.