Zynex Executives Charged with Securities Fraud in Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
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Source: Globenewswire
- Securities Fraud Lawsuit: Hagens Berman has filed a class action lawsuit against former Zynex executives, alleging they misled investors by reporting 'record growth' from 2021 to 2025, resulting in significant investor losses.
- Oversupplying Scheme: The lawsuit claims Zynex routinely shipped patients up to 128 electrode pairs monthly, far exceeding medical necessity to inflate billings to government and private payors, culminating in an $85 million forfeiture.
- Criminal Charges and Bankruptcy: Former CEO Thomas Sandgaard and former COO Anna Lucsok were indicted for healthcare and securities fraud in January 2026, leading to Zynex's bankruptcy filing and delisting from Nasdaq, causing near-total loss for common equity holders.
- Critical Deadline: Investors who purchased Zynex common stock between February 25, 2021, and December 15, 2025, must act by April 21, 2026, to apply as Lead Plaintiff to recover their losses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
