The Gross Law Firm notifies investors that a class action has commenced in the United States District Court for the District of Colorado on behalf of shareholders of Zynex, Inc. who purchased securities between February 25, 2021 and December 15, 2025.
The filed complaint alleges that defendants made materially false and/or misleading statements 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.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until April 21, 2026 to request that the court appoint them lead plaintiff.
To receive more information, please fill out the form.
