Zynex, Inc. Class Action Lawsuit

Company: Zynex, Inc.

Ticker: (OTC) ZYXIQ

Class Action Period: February 25, 2021 - December 15, 2025

38 Days LeftLead Plaintiff Deadline: April 21, 2026

See If You Qualify For Monetary Reward

Join the Zynex, Inc. Class Action Lawsuit

There is no cost or obligation for you to submit.

The submission of this form does not create an attorney-client relationship.

CLASS ACTION PERIOD

February 25, 2021 - December 15, 2025

Allegations

Allegations

The complaint filed against Zynex, Inc. alleges the company made statements that were materially false and/or misleading and/or failed to disclose that: (a) Zynex shipped products, including electrodes, in excess of need; (b) as a result of this practice, the Company inflated its revenue; (c) the Company’s practice of filing false claims drew scrutiny from insurers, including the health insurance program, Tricare; (d) on August 21, 2023, Travelers commenced an action against Zynex, Sandgaard, Lucsok and Fox in the Superior Court of California alleging that Zynex and the defendants had embarked on a fraudulent overbilling scheme and seeking more than $23 million in damages and civil penalties relating to hundreds of fraudulent claims between 2018 and 2023; (e) management had prioritized aggressive sales strategies to drive orders over compliance with industry laws, rules and regulations; (f) the Company was not committed to maintaining a strong internal control environment; (g) the Company’s order growth was a result of illegal overbilling; (h) as a result, it was reasonably likely that Zynex would face adverse consequences, including removal from insurer networks and penalties from the federal government; and (i) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. The audit committee defendants, acting knowingly or with reckless disregard of the underlying fraud, helped the insiders bolster the Company’s stock price through stock repurchase plans, and even by buying back millions of dollars worth of stock directly from Sandgaard, indicating their supposed belief that the stock was undervalued.

Eligibility

Eligibility

To join the lawsuit, you must have experienced a loss on Zynex, Inc. shares purchased within the class period specified above.

Lead Plaintiff Deadline

Lead Plaintiff Deadline

If you suffered a loss in Zynex, Inc. during the relevant time frame, you have until April 21, 2026 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.

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