Zynex ($ZYXI) Oversupplying Scheme and False Claims Case

The plaintiff has voluntarily dismissed the case, ending the lawsuit.

D. Colorado

Court

1:25-cv-00913

Case number

03/13/2023

Class period Start

03/11/2025

Class period End

05/19/2025

Lead Plaintiff motion deadline

$ZYXI investors filed a lawsuit against Zynex for sending excessive supplies to patients and billing insurers to inflate revenue.
After reporting a revenue shortfall and revealing Tricare suspended payments on March 11, 2025, $ZYXI dropped 51.3%.
$ZYXI investors can join this case to stay updated on potential recovery.
Case Details:

On March 11, 2025, after market close, Zynex ($ZYXI) released its Q4 and full-year 2024 results, revealing that the company had fallen short of revenue expectations due to slower-than-normal payments from insurers. More significantly, Zynex disclosed that Tricare, a major government healthcare payer, had suspended payments while reviewing prior claims. The company confirmed that Tricare represented 20–25% of its annual revenue, and said it was reducing staff by 15% in response to the financial pressure. On this news, $ZYXI plunged 51.3%, closing at $3.41 per share on March 12, 2025.

This came just months after STAT News published a report on June 4, 2024, exposing Zynex’s alleged “oversupplying scheme.” According to the investigation, the company shipped unnecessary monthly supplies like batteries and electrode pads to patients, allowing it to bill insurers for far more than necessary. Several patients reported receiving products they never requested—and then being hit with surprise bills.

The report also revealed that insurers had started removing Zynex from their networks, and that Tricare was among the payers scrutinizing the company’s billing practices. Former employees told STAT the oversupply issue was widespread and had already damaged the company’s business. Following the article, $ZYXI fell 5%.

Based on these events, $ZYXI investors filed a lawsuit against Zynex, claiming the company:
It failed to disclose that this practice had triggered scrutiny from insurers, including a payment suspension by Tricare.
It misled investors by promoting positive financial results while hiding the impact of its billing practices.
Investors believe Zynex misrepresented its financial health and business model.

Case Type

US Securities Class Action

Case Status

Voluntary Dismissed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

03/11/2025

Filing date

03/20/2025

Lead Plaintiff Deadline

05/19/2025

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