Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a shareholder and consumer rights litigation firm, is investigating whether Zynex, Inc. (“Zynex” or the “Company”) (NASDAQ: ZYXI) or certain of its officers and directors issued misleading and false statements and/or failed to disclose information material to investors in violation of federal securities laws.
Zynex develops, manufactures, markets and sells medical devices used for nerve stimulation, pain management, and rehabilitation, as well as non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems for use in hospitals.
On March 11, 2025, after market hours, the Company released its 4Q24 and FY24 financial results, reporting only $45.98 million in revenue for the quarter, which represents a nearly 3% decline year-over-year. In a press release published the same day, the Company revealed TriCare, a payer representing 20-25% of the Company’s annual revenue, has “temporarily suspended payments as they review prior claims.” As a result, the Company also announced it was decreasing its overall staff by 15%. On this news, Zynex’s stock price fell $3.59, or nearly 51%, to close at $3.41 per share on March 12, 2025, on heavy trading volume.