Robbins LLP Reminds Zynex Investors of Lead Plaintiff Deadline in Securities Fraud Class Action

Lawsuit alleges Zynex inflated revenue through false claims and regulatory violations

Published on Mar. 2, 2026

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Robbins LLP has filed a class action lawsuit on behalf of investors who purchased Zynex, Inc. (OTC: ZYXIQ) securities between February 25, 2021 and December 15, 2025. The lawsuit alleges that Zynex, a medical device manufacturer, failed to disclose that it shipped products in excess of need, inflated revenue through false claims, and prioritized aggressive sales over compliance with industry regulations, leading to scrutiny from insurers like Tricare and potential penalties.

Why it matters

The case highlights concerns about alleged corporate misconduct and the importance of transparency for publicly traded companies. Zynex's largest customer, Tricare, temporarily suspended payments due to the review of prior claims, leading to a significant stock price drop. The lawsuit seeks to recover losses for affected investors.

The details

According to the complaint, Zynex is accused of: (a) shipping products, including electrodes, in excess of need; (b) inflating revenue as a result; (c) drawing scrutiny from insurers like Tricare; (d) facing a $23 million lawsuit from Travelers for an alleged fraudulent overbilling scheme; (e) prioritizing aggressive sales over compliance; (f) not maintaining a strong internal control environment; (g) growing orders through illegal overbilling; and (h) facing likely adverse consequences like removal from insurer networks and government penalties.

  • On March 11, 2025, Zynex reported a revenue 'shortfall' in Q4 2024 due to 'slower than normal payments from certain payers', including Tricare temporarily suspending payments.
  • On July 31, 2025, Zynex acknowledged it had not been in compliance with industry regulations, announced a 'transformational' leadership change, and temporarily suspended revenue and profitability guidance.

The players

Zynex, Inc.

A medical device manufacturer that produces and markets electrotherapy devices for pain management, physical rehabilitation, neurological diagnosis, and cardiac monitoring.

Tricare

The health insurance program for the U.S. military, and Zynex's largest customer, accounting for 20-25% of revenue.

Travelers

An insurance company that commenced a $23 million lawsuit against Zynex, alleging a fraudulent overbilling scheme.

Steven Dyson

The new Chief Executive Officer appointed to replace Zynex's previous CEO.

Daniel Moorhead

The former Chief Financial Officer of Zynex who departed the company.

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What’s next

The lead plaintiff deadline for the class action against Zynex, Inc. is April 21, 2026. Shareholders who wish to serve as lead plaintiff must submit their papers to the court by this date.

The takeaway

This case highlights the importance of corporate transparency and accountability, as well as the potential consequences for publicly traded companies that allegedly engage in misconduct such as false claims and regulatory violations. Investors will be closely watching the outcome of this class action lawsuit.