#United States #San Francisco #Securities Class Action #Zynex #Hagens Berman

Zynex Investors: Legal Action Filed Amid Fraud Allegations

Recently, shareholders of Zynex, Inc. have been prompted to take action following the announcement from national shareholder rights law firm Hagens Berman regarding a class action lawsuit. This legal action implicates the company's previous executives in significant misconduct, leading to substantial financial losses for investors. As detailed in the case known as Beidel v. Thomas Sandgaard, et al., the lawsuit was filed in the U.S. District Court for the District of Colorado and addresses allegations spanning from February 25, 2021, to December 15, 2025. It seeks to recover losses felt by those who purchased or acquired Zynex securities during this timeframe.

Background on Allegations

The class action centers around claims that Zynex misrepresented its financial growth to its investors. Specifically, alleged fraudulent practices involved shipping unnecessary medical supplies, which inflated billing amounts submitted to government and private payors. The practice, referred to as an 'oversupplying scheme', reportedly included excessive shipments of electrode pairs—sometimes as many as 128 per month—claiming medical necessity where none existed. Such actions not only misled investors but also led to serious repercussions, including a hefty $85 million forfeiture agreement to the Tricare military health program and subsequent criminal charges against top company officials, including former CEO Thomas Sandgaard.

In light of these allegations, Hagens Berman is urging any affected investors who experienced losses to reach out to discuss their legal rights and options. The firm emphasizes that previous statements of a $1.2 billion claim—once viewed as a benchmark of success—have transformed into a scenario rife with financial devastation culminating in bankruptcy statements and federal indictments against Zynex's former leadership.

Important Deadlines and Actions

Investors who purchased shares during the stated class period should be aware of critical upcoming deadlines. They have until April 21, 2026, to apply to the court for designation as a Lead Plaintiff. Hagens Berman encourages those with potential claims or questions regarding their involvement to submit their information for a review of potential losses.

Consequently, Zynex's trajectory has shifted from what was perceived as growth to a foreboding scenario of legal battles and financial instability. With a delisting from NASDAQ and stock now trading at a fraction of its worth under the symbol ZYXIQ, the urgency for affected shareholders to act has never been more pressing.

The Path Forward

Hagens Berman acknowledges the predicament faced by investors in Zynex and invites anyone holding insight into the company's operations—whether current or former employees—to consider the potential benefits of whistleblower protections under the SEC program. Information provided could play a pivotal role in the litigation process, creating opportunities for those aware of wrongdoing to receive compensation based on successful recovery outcomes.

Seeking Justice

In closing, Zynex investors are encouraged to be proactive. With significant losses reported, Hagens Berman reminds shareholders of their rights as investors and urges prompt action to secure their interests. For ongoing updates on this case or to connect with legal representatives, stakeholders are invited to visit the firm's dedicated Zynex case page and gain clarity on the respective claims process. Potential class members are also advised to reach out directly to Reed Kathrein at the firm for more information and assistance as this situation develops.