Time is running out for investors who held Zynex (OTCPK: ZYXIQ) stock between February 25, 2021, and December 15, 2025. Faruqi & Faruqi, LLP has issued a final reminder that the court-mandated deadline to seek the role of lead plaintiff in the ongoing federal securities class action is April 21, 2026.
The lawsuit centers on serious allegations that the medical device company misled shareholders by prioritizing aggressive, illegal billing tactics over regulatory compliance. Specifically, the complaint claims Zynex allegedly inflated revenue by shipping excessive products and bypassing insurance billing standards, which eventually triggered a massive investigation from payers like Tricare and a $23 million lawsuit from Travelers.
Financial reality set in for shareholders in early 2025. When Zynex announced that Tricare had suspended payments—a development that hit the company’s largest revenue source—the stock plummeted over 51% in a single day. By mid-summer, the full scope of the internal turmoil became public, leading to the departure of top executives and a secondary crash that sent shares down another 45%.
It’s a tough situation for those who saw their holdings evaporate during this period of volatility. While the role of lead plaintiff involves overseeing the litigation, investors shouldn’t feel pressured to step into that spotlight if they don’t want to; you remain a class member regardless of your choice to participate actively.
If you were caught in the middle of these events, Faruqi & Faruqi partner Josh Wilson is handling inquiries at 877-247-4292 or 212-983-9330 (Ext. 1310). Whether you are a former employee with insight into these practices or a shareholder looking to understand your legal options, the firm is currently gathering information to build its case.