Console & Associates, P.C. Investigates Zynex, Inc. Securities Class Action Lawsuit

Core Viewpoint - Zynex, Inc. is facing a securities class action lawsuit due to alleged misleading statements and undisclosed adverse information regarding its business operations, particularly related to revenue shortfalls and payment issues from key payers like Tricare [3][4][7]. Company Overview - Zynex, Inc. develops, manufactures, and markets medical devices focused on pain management and rehabilitation, specializing in electrotherapy technology for non-invasive pain relief and muscle stimulation [3]. Financial Performance - On March 11, 2025, Zynex reported a significant revenue shortfall for the fourth quarter and full year 2024, attributing it to slower payments from certain payers, with Tricare temporarily suspending payments, which constitutes approximately 20-25% of Zynex's annual revenue [4]. Allegations and Misconduct - The complaint alleges that during the class period, Zynex engaged in practices such as shipping products in excess of patient needs, inflating revenue through these shipments, and filing questionable claims that drew scrutiny from insurers [7]. - These practices led to significant risks, including potential removal from insurer networks and federal penalties, making the defendants' statements about Zynex's business and prospects materially misleading [7].