What is the Zynex securities class action about?

The lawsuit alleges Zynex and certain executives misled investors by inflating revenue through excess product shipments and fraudulent overbilling practices. The complaint claims the company made false or misleading statements about its business, growth, compliance, and internal controls.

What are the main allegations against Zynex, Inc.?

The complaint alleges Zynex shipped products beyond medical need, inflated revenue, submitted false claims to insurers, and prioritized aggressive sales over compliance. It also claims the company failed to maintain strong internal controls and misled investors about its operations and risks.

Why is April 21, 2026 important for Zynex investors?

April 21, 2026 is the deadline for investors to seek appointment as lead plaintiff in the federal securities class action against Zynex. Investors who suffered losses during the relevant period may apply to represent the class in pursuing claims.

How did the alleged overbilling scheme affect Zynex investors?

According to the complaint, inflated revenue and undisclosed compliance risks created a misleading picture of Zynex’s financial health. When alleged misconduct and insurer scrutiny became known, investors may have experienced stock price declines and financial losses.

What role did insurers like Travelers and Tricare play in the Zynex allegations?

The complaint references insurer scrutiny, including a lawsuit by Travelers alleging fraudulent overbilling and seeking significant damages. It also mentions concerns from insurers such as Tricare, suggesting increased regulatory and financial risk for the company.

Zynex, Inc. - Faruqi & Faruqi LLP

Zynex, Inc.

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Case Details

Ticker ZYXIQ

Class Period 02/25/2021 - 12/15/2025

Lead Plaintiff Deadline 04/21/2026

Days Left to Seek Plaintiff

If you are a Zynex investor who suffered a loss and would like to learn more, you can provide your information below:

If you purchased or acquired securities in Zynex between February 25, 2021 and December 15, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zynex, Inc. (“Zynex” or the “Company”) (OTCPK: ZYXIQ) and reminds investors of the April 21, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing 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 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 sought 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.

Lead Plaintiff Deadline: April 21, 2026

Call Partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310)
Or submit your information below to learn about your rights.

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