Hagens Berman Files Securities Class Action Against Zynex Following Bankruptcy and Fraud Settlements

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National shareholder rights law firm Hagens Berman has filed a securities class action lawsuit against Zynex, Inc. (ZYXI/ZYXIQ) and its former top executives, alleging a massive overbilling scheme that led to the company's delisting and subsequent Chapter 11 bankruptcy filing. The lawsuit claims Zynex engaged in a predatory "oversupplying" scheme, shipping patients excessive medical supplies regardless of medical necessity in order to inflate billings to government and private payors.

Why it matters

The allegations against Zynex suggest the company's purported growth was not the result of legitimate demand, but rather a deceptive scheme to defraud payors. This case highlights the importance of corporate accountability and the need for effective internal controls to prevent such widespread manipulation of supply orders and billing data.

The details

The lawsuit, Beidel v. Sandgaard, et al., alleges that throughout the Class Period (February 25, 2021 to December 15, 2025), Zynex engaged in a scheme to ship patients excessive medical supplies, in some cases up to 128 electrode pairs per month, regardless of medical necessity, in order to inflate billings to government and private payors. The complaint also alleges that Zynex lacked effective internal controls to prevent this widespread manipulation of supply orders and billing data. In early 2025, Zynex's largest payor, Tricare, suspended all payments to the company, but management allegedly concealed the severity of this suspension until the company was forced to agree to forfeit over $85 million to resolve the fraud allegations. 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. 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.

• In early 2025, Tricare suspended all payments to Zynex.
• On January 21, 2026, former CEO Thomas Sandgaard and former COO Anna Lucsok were indicted for health care and securities fraud.
• Zynex filed for Chapter 11 bankruptcy and was delisted from the Nasdaq following the exposure of the alleged practices.

What they’re saying

What’s next

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.