The Zynex, Inc. class action lawsuit was filed on behalf of those who purchased or otherwise acquired Zynex, Inc. (“Zynex”) (NASDAQ: ZYXI) securities between February 25, 2021 and December 15, 2025, inclusive (the “Class Period”). Captioned Beidel v. Sandgaard, No. 26-cv-00714 (D. Colo.), the Zynex class action lawsuit alleges that Zynex and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.
If you lost money as a result of your Zynex investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at info@ktmc.com.
CASE BACKGROUND:
Zynex is a medical device manufacturer that produces and markets electrotherapy devices for use in pain management, physical rehabilitation, neurological diagnosis, and cardiac monitoring. Zynex offers these devices through its three subsidiaries: Zynex MedicalTM, Zynex Monitoring SolutionsTM, and Zynex NeuroDiagnosticsTM.
COMPLAINT ALLEGATION SUMMARY:
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Zynex was engaged in rampant overbilling and over-shipping, and the majority of the supplies’ billings were improper and/or unnecessary; and (2) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
WHY DID ZYNEX’S STOCK DROP?
On numerous conference calls between 2021 and 2024, Defendants boasted about Zynex’s increased revenues, attributing the success to a “consistent increase in order growth and revenue…in large part due to productivity in our sales force.” On March 11, 2025, Zynex revealed a significant revenue shortfall “due to slower than normal payments from certain payers,” resulting in Zynex’s stock price dropping over 51.%. Then, on July 31, 2025, it was further revealed that Zynex had been experiencing regulatory compliance problems, and that the company was now remediating these concerns through the “transformational” leadership change that quarter that saw the departure of the CEO and CFO. This news was not well received by the market, and on August 1, 2025, Zynex’s stock fell to $1.26 per share, a 45% decline. Then, on December 15, 2025, Zynex filed a petition for Chapter 11 bankruptcy protection, which torpedoed the company’s market value. Soon thereafter, a federal grand jury returned an indictment that charged the former CEO and COO with one count of conspiracy to commit health care fraud, mail fraud, and three counts of aggravated identity theft. Zynex’s stock was ultimately delisted from the Nasdaq exchange on January 13, 2026.
THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Zynex securities during the Class Period to seek appointment as lead plaintiff in the Zynex class action lawsuit. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.