Zynex, Inc. (ZYXI) Shares Under Pressure Amid Tricare Payment Halt, Dim Outlook, and Investor Lawsuit – Hagens Berman

SAN FRANCISCO, April 03, 2025 (GLOBE NEWSWIRE) -- Shares of Zynex Inc. (NASDAQ: ZYXI), a medical device manufacturer specializing in nerve stimulation products, are trading down 65% over the past month, as the company grapples with a confluence of financial setbacks, regulatory scrutiny, and a pending investor class action. Hagens Berman is investigating claims for alleged violations of the U.S. securities laws and urges investors who purchased Zynex securities and suffered substantial losses to submit your losses now. Class Period: Mar. 13, 2023 – Mar. 11, 2025Lead Plaintiff Deadline: May 19, 2025Visit: www.hbsslaw.com/investor-fraud/zyxi Contact the Firm Now: ZYXI@hbsslaw.com 844-916-0895 Zynex’s Disappointing Fourth Quarter Results ZYXI share price depression stems from its disastrous 4Q 2024 earnings release. The Englewood, Colorado-based firm reported fourth-quarter 2024 revenue of $46.0 million, a roughly 2% year-over-year decline, falling short of Wall Street's expectations. The company also swung to a net loss of $0.02 per share, a stark contrast to the $0.04 net income per share reported in the same period last year. The disappointing results reportedly prompted RBC Capital Markets to downgrade Zynex to Sector Perform from Outperform. According to news outlets, in a report to its clients, RBC analyst Shagun Singh cited a "lack of visibility" into the company's operations and commercial outlook, particularly concerning its relationship with Tricare, the military health program that represents a significant portion of Zynex's revenue. Singh reportedly noted that Tricare, Zynex's largest customer, has temporarily suspended payments amid an ongoing review of prior claims. Singh added that the company's decision to withhold 2025 guidance and implement a 15% workforce reduction further compounded investor concerns. Singh revised RBC’s price target for Zynex shares to $5.50, down from $11.00, warning of a potential "domino effect" stemming from Tricare's payment suspension. Zynex Securities Class Action Adding to Zynex’s woes, a securities class action lawsuit has been filed in the District Court of Colorado, alleging that the company made false and misleading statements regarding its revenue recognition practices and its relationship with Tricare. The suit, captioned Tuncel v. Zynex, Inc., et al., seeks to represent investors who purchased Zynex securities between March 13, 2023, and March 11, 2025. The complaint alleges that Zynex engaged in “oversupplying” customers with products, including electrodes, leading to inflated revenue figures. It further claims that this practice drew scrutiny from insurers, including Tricare, and that Zynex failed to disclose the potential for adverse consequences, such as removal from insurer networks and government penalties. According to the complaint, revelations of Zynex's alleged practices surfaced with a June 4, 2024 report by medical journal STAAT detailing an "oversupplying scheme" involving excessive shipments of supplies and subsequent inflated billing. The report also indicated that insurers were "kicking the company out of network." The truth allegedly emerged on March 11, 2025, when Zynex reported its dismal Q4 and FY 2024 financial results. The complaint highlights Zynex CEO Thomas Sandgaard’s attributing the fourth-quarter revenue shortfall to "slower than normal payments from certain payers" and the Tricare payment suspension. Hagens Berman’s Investigation Hagens Berman is investigating the alleged claims. “We are examining Zynex's financial reporting and business practices. We believe investors deserve a complete and transparent understanding of these events,” 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 ZYXI@hbsslaw.com. About Hagens BermanHagens 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. Contact: Reed Kathrein, 844-916-0895

Zynex, Inc. (ZYXI) Shares Under Pressure Amid Tricare Payment Halt, Dim Outlook, and Investor Lawsuit – Hagens Berman

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