Zynex, Inc. (ZYXI) Craters 51% On Possible Accounting Issues, Securities Class Action Filed – Hagens Berman
SAN FRANCISCO - A securities class action has been filed against Zynex, Inc. (NASDAQ: ZYXI), a medical device manufacturer that produces and markets electrotherapy devices for use in pain management and physical rehabilitation, after it reported dismal Q4 and FY 2024 financial results which sent the price of Zynex shares down $3.59 (-51%) on March 12, 2025. The suit, captioned Tuncel v. Zynex, Inc., et al., No. 1:25-cv-00913 (D. Colo.) seeks to represent investors who purchased Zynex securities between March 13, 2023 and March 11, 2025.
Hagens Berman is investigating the claims and urges investors who purchased Zynex securities and suffered substantial losses to submit your losses now.
Class Period: Mar. 13, 2023 – Mar. 11, 2025
Lead Plaintiff Deadline: May 19, 2025
Visit: www.hbsslaw.com/investor-fraud/zyxi
Contact the Firm Now: [email protected], 844-916-0895
Zynex, Inc. (ZYXI) Securities Class Action:
The litigation is focused on the propriety of Zynex’s statements about its sales and billing practices, its revenue recognition practices, and its relationship with the military health program for active-duty soldiers and their family members (“Tricare”), which represents 20 – 25% of company’s revenue.
The complaint alleges that Zynex made false and misleading statements while failing to disclose crucial information to investors. More specifically, the suit alleges that:
- Zynex shipped product, including electrodes, in excess of customers’ needs;
- As a result of this practice, Zynex inflated its revenues;
- Zynex’s practice of filing false claims drew scrutiny from insurers, including Tricare; and
- As a. result, it was reasonably likely that Zynex would face adverse consequences such as removal from insurer networks and penalties by the federal government.
Investors began to learn the truth on June 4, 2024, when medical journal STAAT published “How a device maker inundated pain patients with unwanted batteries and surprise bills.” This report claimed that Zynex engaged in an “oversupplying scheme” by sending inordinate amounts of monthly supplies like electrode pads and batteries in order to “bill insurers for thousands of dollars more than it otherwise could.” STAAT further revealed that, as a result of this practice, insurers were “kicking the company out of network.”
Then, on March 11, 2025, Zynex reported dismal Q4 and FY 2024 financial results. The company’s Q4 revenue implied a 2% drop from the year-earlier period and YE net income per share plummeted from $0.27 in 2023 to $0.09 in 2024. According to Zynex CEO Thomas Sandgaard “[o]ur fourth quarter revenue was less than expected[]” and “[t]he shortfall was due to slower than normal payments from certain payers and we were recently notified that Tricare has temporarily suspended payments as they review prior claims.”
“We are concerned about potential issues with Zynex’s revenue recognition and sales practices,” said Reed Kathrein, the Hagens Berman Partner leading the firm's probe.
If you invested in Zynex and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Zynex case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Zynex should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
