7 Days left to seek lead plaintiff status.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, failed to disclose material adverse facts about the Company’s business, operations, and prospects, and (as to the Audit Committee Defendants) engaged in deceptive behavior. Specifically, Defendants failed to disclose to investors: (a) that Zynex shipped products, including electrodes, in excess of need; (b) that, as a result of this practice, the Company inflated its revenue; (c) that the Company’s practice of filing false claims drew scrutiny from insurers, including Tricare; (d) that 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 seeking more than $23 million in damages and civil penalties relating to hundreds of fraudulent claims between 2018 and 2023; (e) that management had prioritized aggressive sales strategies to drive orders over compliance with industry laws, rules and regulations; (f) that the Company was not committed to maintaining a strong internal control environment; (g) that the Company’s order growth was a result of illegal overbilling; (h) that, 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) that, 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. The Audit Committee Defendants, acting knowingly or with reckless disregard of the underlying fraud, helped the insiders bolster the Company’s stock price through stock repurchase plans, and even by buying back millions of dollars worth of stock directly from Sandgaard, indicating their supposed belief that the stock was undervalued.

Zynex, Inc. (US TRADING VENUE: ZYXI) Claim Form