Zynex Investors Notified of Class Action Lawsuit Details
Important Investor Information for Zynex
On April 15, 2025, it was reported that a securities class action lawsuit has been initiated against Zynex, Inc. (NASDAQ: ZYXI) related to transactions of its securities. The lawsuit encompasses purchases made from March 13, 2023, to March 11, 2025, marking a significant time frame for potential claimants.
Understanding the Class Action
Investors who acquired Zynex securities during the specified class period have until May 19, 2025, to seek appointment as lead plaintiff in the case. This designation allows them to represent others in what is being viewed as a pivotal class action lawsuit. Understanding your rights and the implications of this lawsuit is crucial for all affected stakeholders.
Background of the Lawsuit
Headquartered in Englewood, Colorado, Zynex specializes in medical devices, particularly electrotherapy devices designed for pain management. The company has enjoyed significant attention for its innovative approaches to rehabilitation. However, recent actions have raised serious concerns. In a publication by a prominent medical journal, allegations surfaced regarding Zynex's practices involving the provision of excessive supplies, including electrode pads and batteries. Reports suggested that these actions were part of a scheme to generate inflated bills to insurers.
This situation led to severe consequences, as insurers reportedly began removing Zynex from their networks due to these business practices. Following such news, Zynex's stock price saw a notable decline of 5%, closing at approximately $9.35 on June 4, 2024.
Q4 and Annual Financial Results
As Zynex prepared to announce its financial results for the fourth quarter of 2024, apprehensions grew among investors. Upon the release on March 11, 2025, the company disclosed a substantial revenue shortfall attributed to slower payments from key payers. It was revealed that the U.S. military's health insurance program, Tricare, had temporarily halted payments while reviewing prior submissions, further complicating the situation for Zynex investors.
This disclosure resulted in Zynex's stock experiencing a drastic 51% plunge, closing at $3.41 the following day. Such fluctuations underscore the urgency for investors to understand their rights and potential actions in response to the class action.
Role of Lead Plaintiffs
In a class action lawsuit, the lead plaintiff plays a critical role, typically as a representative of the broader class of investors. This individual or group takes charge of the litigation and selects legal counsel to advocate for the collective interests of all class members. Importantly, your potential to partake in any recovery achieved in this lawsuit remains intact, regardless of participation as a lead plaintiff.
How to Get Involved
Investors wishing to assert their rights must act swiftly. Those interested can reach out for assistance to lawyers specializing in securities litigation, like the experienced team at Berger Montague. Participation is crucial, as it engages the firm’s expertise in these matters in a way that benefits all class members.
About Berger Montague
With roots stretching back to 1970, Berger Montague is recognized for its longstanding commitment to securities class action litigation. Employing a team of highly skilled attorneys, the firm has championed the interests of both individual and institutional investors across the nation. Their extensive experience in navigating complex securities matters positions them as invaluable advocates for client rights.
Contact Information for Assistance
Investors seeking further clarification or wishing to participate in the class action can get in touch with Berger Montague. For inquiries, reach out to:
Andrew Abramowitz, Senior Counsel at Berger Montague, can be contacted at (215) 875-3015.
Additionally, Peter Hamner is available for further information regarding your rights as an investor.
Frequently Asked Questions
What is the class action lawsuit about?
The lawsuit addresses allegations against Zynex for engaging in misleading practices regarding their medical device supplies and subsequent billing to insurers.
Who can participate in the class action?
Investors who purchased Zynex securities from March 13, 2023, to March 11, 2025, are eligible to participate and may seek to become lead plaintiffs.
What is the deadline to act on this lawsuit?
The deadline for investors to seek lead plaintiff status is May 19, 2025. It's essential to act before this date to ensure your rights are represented.
How is a lead plaintiff selected?
A lead plaintiff is typically the investor or group of investors with the largest financial stake in the case, chosen to represent the entire class.
Where can I find more information regarding my rights?
For additional insights and guidance, individuals are encouraged to contact Berger Montague, who can provide professional assistance and answers to pertinent questions.
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