Zynex ($ZYXI) Alleged Oversupplying and Overbilling Scheme Case

Investors can submit applications for the lead plaintiff role.

D. Colorado

Court

1:26-cv-00714

Case number

02/25/2021

Class period Start

12/15/2025

Class period End

04/21/2026

Lead Plaintiff motion deadline

$ZYXI investors filed a claim against Zynex for allegedly inflating revenue through an overbilling scheme that shipped unnecessary medical supplies and submitted false insurance claims.
After disclosures about insurer scrutiny, payment suspensions, compliance failures, executive departures, and a federal indictment, $ZYXI fell 82.0% from $7.00 on March 11, 2025 to $1.26 on August 1, 2025.
$ZYXI investors can join this case to be notified about potential recovery.
Case Details:

Between February 25, 2021 and December 15, 2025, Zynex told investors its strong revenue and record order growth were driven by sales productivity, expanding prescriber relationships, and growing demand for its pain management devices, while emphasizing compliance and sound internal controls.

The complaint alleges that, in reality, growth was fueled by an overbilling scheme in which Zynex shipped excessive supplies—such as electrode pads and batteries—to patients and billed insurers for products that were not medically necessary. It claims the company failed to disclose that this practice inflated revenue, triggered insurer scrutiny (including from Tricare), and led to accusations of fraudulent overbilling, including a lawsuit filed by Travelers in August 2023.

On June 4, 2024, STAT published a report describing an “oversupplying scheme,” and $ZYXI fell $0.50, closing at $9.35. On March 11, 2025, Zynex disclosed a revenue shortfall and that Tricare had suspended payments; the next day, $ZYXI fell $3.59, or 51.3%, closing at $3.41. By August 1, 2025, shares had dropped to $1.26, an 82.0% total decline over the correction period.

Based on these events, $ZYXI investors filed a claim against Zynex, alleging the company:
It carried out a scheme to over-ship and overbill insurers for medically unnecessary devices and supplies.
It misrepresented that its revenue growth and order increases were driven by legitimate demand and sales productivity rather than improper billing practices.
It artificially inflated its stock price, which later collapsed when insurer suspensions, compliance failures, and government investigations came to light.
Investors argue Zynex misled the market about the true source and sustainability of its growth, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

03/12/2025

Filing date

02/20/2026

Lead Plaintiff Deadline

04/21/2026

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