Bragar Eagel Squire Investigates Zynex for Alleged Stock Price Inflation and Misleading Practices

What's Happening?

Bragar Eagel & Squire, P.C., a law firm specializing in shareholder rights, is investigating Zynex, Inc. following a class action complaint filed on July 9, 2025. The investigation focuses on whether Zynex's board of directors breached their fiduciary duties by allegedly inflating the company's stock price through false and misleading statements about its financial performance and compliance with insurance reimbursement policies. The complaint accuses Zynex of engaging in a systemic 'oversupplying scheme,' where excessive quantities of supplies were shipped to patients, resulting in inflated billing to insurers. This practice drew scrutiny from insurers, including Tricare, which accounts for 20-25% of Zynex's annual revenue. The full extent of these practices was revealed on March 11, 2025, when Zynex announced a significant revenue shortfall and disclosed that Tricare had temporarily suspended payments pending a review of prior claims.

Why It's Important?

The investigation into Zynex's practices is significant as it highlights potential regulatory and financial risks for the company, which could impact its financial stability and shareholder value. The suspension of payments by Tricare, a major revenue source, underscores the seriousness of the allegations and the potential for substantial financial repercussions. The sharp decline in Zynex's stock price following the disclosure of these issues reflects investor concerns about the company's transparency and governance. This case also serves as a reminder of the importance of corporate accountability and the role of shareholder rights law firms in protecting investors from potential misconduct.

What's Next?

Long-term stockholders of Zynex are encouraged to contact Bragar Eagel & Squire for more information about the claims and their rights. The law firm is actively seeking additional information and potential claimants to strengthen the case against Zynex. As the investigation progresses, Zynex may face increased scrutiny from regulators and investors, potentially leading to further legal actions or settlements. The outcome of this investigation could have broader implications for the company's operations and its relationships with insurers, particularly if additional evidence of misconduct is uncovered.