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

Zynex Investors Face Legal Challenges Amid Bankruptcy

Hagens Berman, a prominent national law firm focusing on shareholder rights, has announced that a class action lawsuit has been filed against Zynex, Inc. (NASDAQ: ZYXI / ZYXIQ) following the company’s recent bankruptcy declaration. This lawsuit, which targets the company and its former executives, arises in the wake of serious allegations of a systematic overbilling scheme and the company’s subsequent delisting from stock exchanges.

Background of the Case

The legal action outlined in the case Beidel v. Sandgaard, et al., filed in the U.S. District Court for Colorado, alleges that Zynex has engaged in deceptive practices that inflated the company's revenues by overbilling both governmental and private payors. The lawsuit cites a significant period in which investors may have incurred substantial losses—specifically from February 25, 2021, to December 15, 2025.

According to Reed Kathrein, the attorney leading the investigation, this case focuses on what is described as a predatory 'oversupplying' scheme, which is said to convey false narratives regarding the genuine demand for Zynex's products. The firm is encouraging those affected to come forward to reclaim their losses as the April 21, 2026, deadline approaches to secure representation as lead plaintiffs in the case.

Key Allegations Highlighted in the Lawsuit

The complaint underscores several pivotal points of contention:

1. Systematic Overbilling Practices

The lawsuit claims that Zynex engaged in excessive distributions of medical supplies—allegedly sending out as many as 128 electrode pairs per month to patients without medical necessity. This practice was purportedly aimed at inflating billings, leading to legal breaches as the company failed to maintain adequate controls to oversee ordering and billing processes.

2. Payment Suspension by Key Payors

A significant impact on Zynex’s revenue came in early 2025 when Tricare, the company’s primary payor, halted all payments due to these allegations. Reports indicate that management downplayed the severity of this suspension, culminating in Zynex agreeing to pay over $85 million to settle the fraud accusations.

3. Criminal Indictments of Top Executives

In a significant turn of events, former CEO Thomas Sandgaard and former COO Anna Lucsok were indicted for securities and healthcare fraud in January 2026, a situation that led to their immediate ousting from the company.

4. Resulting Bankruptcy and Loss of Value

The culmination of these alleged illicit activities led to Zynex filing for Chapter 11 bankruptcy due to the enormous financial repercussions, which resulted in dramatic losses for common stockholders post-bankruptcy.

Call to Action for Investors

As the April deadline approaches, Hagens Berman is urging Zynex investors who purchased shares during the class action period to take action. Those who wish to have their voices heard in court can visit Hagens Berman’s dedicated page regarding Zynex to understand their options and potentially recover financial losses.

Whistleblower Information

Moreover, the firm encourages individuals with insider information about Zynex’s operations to consider the SEC’s Whistleblower Program, through which they may provide crucial information and possibly receive a reward of up to 30% of any successful recovery resulting from the agency's actions.

Hagens Berman, which has successfully recovered over $2.9 billion on behalf of clients in various cases involving corporate accountability, continues to seek justice for those impacted by Zynex’s practices. More details surrounding the lawsuit can be found at Hagens Berman’s website.

All affected investors are reminded of the importance of acting promptly to preserve their rights and reclaim losses incurred during this turbulent period with Zynex.