Zynex Faces Securities Class Action Lawsuit Following Bankruptcy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: Globenewswire
- Lawsuit Background: Hagens Berman has filed a securities class action lawsuit against Zynex and its former executives following the company's Chapter 11 bankruptcy due to a massive overbilling scheme, resulting in significant losses for investors.
- Overbilling Allegations: The lawsuit alleges that from February 2021 to December 2025, Zynex shipped excessive medical supplies to patients, with some receiving up to 128 electrode pairs per month, violating federal securities laws and severely damaging the company's financial health.
- Payment Suspension Impact: In 2025, Zynex's largest payor, Tricare, suspended all payments, and management concealed the severity of this situation, ultimately forcing the company to forfeit over $85 million to resolve fraud allegations, exacerbating its financial crisis.
- Executives Indicted: Former CEO Thomas Sandgaard and former COO Anna Lucsok were indicted for healthcare and securities fraud, leading to their immediate removal from the company, resulting in near-total destruction of shareholder value and reputation.
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.
