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Published May 6, 2025
When insurance companies zapped Zynex for massive insurance fraud, its revenues plummeted. Shocked investors dumped their shares and Zynex’s stock lost fifty-one percent overnight. Now those investors are fighting back with a class action against Zynex.
Zynex makes electrotherapy devices for pain management and its revenue depends on insurance reimbursements. Throughout 2020 to 2024, Zynex touted record profits and sales. Then, a June 2024 medical journal article revealed many of those sales were fraudulent. The article discovered Zynex pushed unneeded and unwanted batteries and pads on customers and then billed insurers thousands for the unnecessary parts. But, insurers fought back and delisted Zynex.
Investors felt the burn in March 2025 after Zynex said government insurer Tricare stopped paying claims and was investigating Zynex. The Company also said it had a major revenue shortfall because other insurers had stopped paying, too.
Investors quickly dumped their shares and now more investors are joining the lawsuit.