SAN FRANCISCO, March 13, 2026 (GLOBE NEWSWIRE) -- National shareholder rights law firm Hagens Berman is notifying investors that a securities class action lawsuit has been filed against Zynex, Inc. (ZYXI/ ZYXIQ) and its former top executives. The litigation follows the company's delisting and subsequent Chapter 11 bankruptcy filing triggered by revelations of a massive overbilling scheme. The firm urges Zynex investors who suffered significant losses to:
The lawsuit, Beidel v. Sandgaard, et al., No. 1:26-cv-00714, was filed in the U.S. District Court for the District of Colorado. The action seeks to recover losses for all persons and entities who purchased or otherwise acquired Zynex securities during the Class Period: February 25, 2021, through December 15, 2025, inclusive.
Zynex investors are encouraged to visit: www.hbsslaw.com/cases/zynex
“The Beidel complaint alleges a fundamental deception of the market regarding the source of Zynex’s revenue.” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation of the claims in the pending suit. “The allegations suggest that Zynex’s purported growth was not the result of legitimate demand, but was instead driven by a predatory ‘oversupplying’ scheme that targeted patients and defrauded payors.”
Summary of Allegations: The “Oversupplying” Scheme
The filed complaint alleges that throughout the Class Period, defendants violated federal securities laws by failing to disclose.
- Systemic Overbilling: Zynex allegedly engaged in a scheme to ship patients excessive medical supplies—in some cases up to 128 electrode pairs per month—regardless of medical necessity, specifically to inflate billings to government and private payors. The lawsuit alleges that Zynex lacked effective internal controls to prevent the widespread manipulation of supply orders and billing data.
- Tricare Suspension: In early 2025, Zynex’s largest payor, Tricare, suspended all payments to the company. The complaint alleges management concealed the severity of this suspension until the company was forced to agree to forfeit over $85 million to resolve the fraud allegations.
- Criminal Indictments: On January 21, 2026, former CEO Thomas Sandgaard and former COO Anna Lucsok were indicted for health care and securities fraud, leading to their immediate removal from the company.
- Total Value Destruction: Following the exposure of these practices and the massive forfeiture, Zynex filed for Chapter 11 bankruptcy and was delisted from the Nasdaq, resulting in a near-total loss for common equity holders.
Critical Deadline: April 21, 2026
If you purchased Zynex common stock during the Class Period (February 25, 2021 – December 15, 2025), you have until April 21, 2026, to ask the Court to appoint you as Lead Plaintiff.
- SUBMIT YOUR ZYNEX LOSSES NOW
- Contact: Reed Kathrein at 844-916-0895 or email ZYXI@hbsslaw.com
If you’d like more information and answers to frequently asked questions about the Zynex case and the firm’s investigation, read more »
Whistleblowers: Persons with non-public information regarding Zynex should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ZYXI@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
