Johnson Fistel, PLLP Investigates Zynex on Behalf of Long-term Shareholders

Shareholder rights law firm Johnson Fistel, PLLP is investigating potential violations of federal and state securities laws by certain officers and directors of Zynex, Inc. (NASDAQ: ZYXI). Current, long-term shareholders that have continuously held shares during the relevant time periods, may be able to hold certain officers and directors personally accountable for misconduct and assist in reforming the company’s corporate governance.

A class action lawsuit was filed on March 20, 2025, in the U.S. District Court for the District of Colorado on behalf of investors who purchased shares between March 13, 2023, and March 11, 2025. The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that Zynex shipped products, including electrodes, in excess of need; (2) that, as a result of this practice, the Company inflated its revenue; (3) that the Company’s practice of filing false claims drew scrutiny from insurers, including Tricare; (4) that, as a result, it was reasonably likely that Zynex would face adverse consequences, including removal from insurer networks and penalties from the federal government; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.