NEW YORK, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed against Zynex, Inc. (OTCMKTS: ZYXIQ) (“Zynex” or the “Company”) inclusive on behalf of all persons and entities that purchased or otherwise acquired Zynex shares between February 25, 2021 and December 15, 2025, both dates inclusive (the "Class Period"). Investors have until April 21, 2026, to seek appointments as lead plaintiff.
PLEASE CLICK HERE TO JOIN THE CASE AND SUBMIT CONTACT INFORMATION
Core Allegations
The complaint alleges violations of federal securities laws based on materially false and misleading statements and omissions. Specifically, it claims:
- Excess Product Shipments
Zynex allegedly shipped products (including electrodes) in excess of medical necessity. - Revenue Inflation
These excess shipments allegedly inflated reported revenue. - False Claims Scrutiny
The billing practices allegedly drew scrutiny from insurers, including Tricare. - Travelers Litigation (August 21, 2023)
An action was filed in California Superior Court by Travelers against Zynex and certain executives, alleging a fraudulent overbilling scheme and seeking more than $23 million in damages and penalties related to hundreds of claims (2018–2023). - Compliance Failures
Management allegedly prioritized aggressive sales growth over regulatory compliance and failed to maintain strong internal controls. - Improper Order Growth
The company’s reported order growth was allegedly driven by illegal overbilling practices. - Regulatory & Network Risk
The company allegedly faced foreseeable risks, including:- Removal from insurer networks
- Federal government penalties
- Materially Misleading Statements
As a result of the above, defendants’ positive public statements about operations and prospects allegedly lacked a reasonable basis.
Investors who suffered losses have until April 21, 2026 to seek appointment as lead plaintiff.
Why Wolf Haldenstein Adler Freeman & Herz LLP?:
This illustrious firm, founded in 1888, is steadfast in their pursuit of justice for investors who have suffered financial harm due to these misrepresented statements. The law firm brings to the fore over 125 years of legal expertise in securities litigation and has a proven track record of protecting the rights of investors.
We encourage all investors who have been affected or have information that will assist in our investigation, to contact Wolf Haldenstein Adler Freeman & Herz LLP.
Contact:
- Phone: (800) 575-0735 or (212) 545-4774
- Email: classmember@whafh.com
- Contact Person: Gregory Stone, Director of Case and Financial Analysis
Firm Website: Wolf Haldenstein Adler Freeman & Herz LLP
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