Zynex(US:ZYXI) Globenewswire·2026-02-24 19:05Core Viewpoint - A securities class action lawsuit has been filed against former executives of Zynex, Inc. for allegedly misleading investors about the company's growth, which was reportedly driven by fraudulent practices [1][2]. Summary of Allegations - The lawsuit claims that Zynex engaged in an "oversupplying scheme," shipping medically unnecessary supplies to inflate billings, leading to significant financial repercussions including an $85 million forfeiture to the Tricare military health program [2][6]. - Allegations include that Zynex's reported revenue growth was not organic but rather a result of predatory billing practices, despite warnings from major insurers [3][6]. - The company faced criminal charges against its former leadership, including the indictment of former CEO Thomas Sandgaard and former COO Anna Lucsok for health care and securities fraud [6]. Financial Impact - Zynex's revenue was significantly impacted, with the company forced to file for Chapter 11 bankruptcy and subsequently delisted from the Nasdaq, resulting in a near-total loss of value for common equity holders [6]. - Tricare, which represented 25% of Zynex's revenue, suspended payments in March 2025, contributing to the company's financial decline [6]. Legal Proceedings - The class action lawsuit seeks to recover losses for all individuals and entities that purchased Zynex securities during the class period from February 25, 2021, to December 15, 2025 [1][5]. - Investors have until April 21, 2026, to request appointment as Lead Plaintiff in the lawsuit [5]. Whistleblower Information - Individuals with non-public information regarding Zynex are encouraged to consider their options to assist in the investigation or utilize the SEC Whistleblower program, which offers rewards for original information leading to successful recoveries [5].