Zynex(US:ZYXI) Globenewswire·2026-03-17 22:24Core 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 deceptive "oversupplying" scheme, inflating revenue by shipping excessive medical supplies to patients, which was not based on legitimate medical necessity [2][6]. - The complaint claims that Zynex's growth was misrepresented, attributing it to fraudulent practices rather than genuine market demand [2][3]. - Zynex allegedly lacked effective internal controls to prevent manipulation of supply orders and billing data [6]. Financial Impact - Following the exposure of the overbilling practices, Zynex was forced to forfeit over $85 million to resolve fraud allegations and subsequently filed for Chapter 11 bankruptcy, resulting in a near-total loss for common equity holders [6]. Legal Proceedings - The lawsuit, titled 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, leading to their removal from the company [6]. Important Dates - Investors who purchased Zynex common stock during the Class Period have until April 21, 2026, to request appointment as Lead Plaintiff in the lawsuit [4].