Zynex(US:ZYXI) Globenewswire·2026-03-13 15:37Core Viewpoint - A securities class action lawsuit has been filed against Zynex, Inc. and its former executives due to a significant overbilling scheme that led to the company's delisting and Chapter 11 bankruptcy filing [1][2]. Summary of Allegations - The lawsuit alleges that Zynex engaged in a predatory "oversupplying" scheme, misleading investors about the legitimacy of its revenue growth [2][3]. - The complaint claims that Zynex shipped excessive medical supplies, such as up to 128 electrode pairs per month, to inflate billings to payors [6]. - It is alleged that Zynex lacked effective internal controls to prevent manipulation of supply orders and billing data [6]. Financial Impact - Zynex's largest payor, Tricare, suspended all payments in early 2025, and the company was forced to forfeit over $85 million to resolve fraud allegations [6]. - Following the exposure of these practices, Zynex filed for Chapter 11 bankruptcy and was delisted from the Nasdaq, resulting in a near-total loss for common equity holders [6]. Legal Proceedings - The lawsuit, Beidel v. Sandgaard, was filed in the U.S. District Court for the District of Colorado, covering the Class Period from February 25, 2021, to December 15, 2025 [2][4]. - Former CEO Thomas Sandgaard and former COO Anna Lucsok were indicted for health care and securities fraud on January 21, 2026 [6]. Important Dates - Investors who purchased Zynex common stock during the Class Period have until April 21, 2026, to request appointment as Lead Plaintiff [4]. 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 of up to 30 percent of any successful recovery [4].