A quiet deadline is coming up for investors in Zynex (OTCPK: ZYXIQ). Faruqi & Faruqi, LLP says shareholders who bought or acquired the company’s securities between February 25, 2021 and December 15, 2025 may want to act before April 21, 2026 if they want to seek the role of lead plaintiff in a federal securities class action.
Misryoum newsroom reported that Securities Litigation Partner James (Josh) Wilson is encouraging affected investors to contact him directly to discuss their options. The firm’s reminder is tied to a case filed against Zynex, Inc. and alleges violations of federal securities laws through allegedly false and/or misleading statements—or, as the complaint frames it, omissions—about how the company operated.
The complaint, according to Misryoum editorial desk notes, lays out several claims: that Zynex shipped products, including electrodes, in excess of need; that the company inflated revenue as a result; and that its practice of filing false claims drew scrutiny from insurers, including Tricare. It also points to an August 21, 2023 action in Superior Court of California, where Travelers commenced an action against Zynex, Sandgaard, Lucsok and Fox, alleging 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.
The timeline inside the reminder gets more specific and, honestly, a bit jarring if you’re following the stock. On March 11, 2025, after the market closed, Zynex reported its fourth quarter and full year 2024 financial results, and it cited a significant revenue “shortfall” in the quarter “due to slower than normal payments from certain payers.” Misryoum newsroom reported Zynex also said “Tricare has temporarily suspended payments as they review prior claims.” Tricare is described as the health insurance program for the U.S. military, and the reminder says it’s Zynex’s largest customer, accounting for 20-25% of revenue.
On this news, Misryoum analysis indicates Zynex’s stock price fell $3.59 per share, or 51.3%, to close at $3.41 per share on March 12, 2025, on unusually heavy trading volume. Then, on July 31, 2025, the full extent of the defendants’ alleged misdeeds was said to be revealed when the company acknowledged it had not been in compliance with industry regulations. That same day, Zynex also remarked on a “transformational” leadership change during the quarter with the appointment of new Chief Executive Officer (“CEO”) Steven Dyson (“Dyson”) to replace Sandgaard, and the announced departure of the Company’s Chief Financial Officer (“CFO”) Daniel Moorhead (“Moorhead”). Zynex temporarily suspended revenue and profitability guidance as well.
After that, Misryoum editorial team noted another drop on August 1, 2025: the stock fell from $2.23 per share the previous day to $1.26 per share, a 45% decline in heavy trading volume. The reminder also describes how the complaint alleges management prioritized aggressive sales strategies to drive orders over compliance with industry laws, rules and regulations; that the company was not committed to maintaining a strong internal control environment; and that order growth resulted from illegal overbilling. It further claims it was reasonably likely Zynex would face adverse consequences—including removal from insurer networks and penalties from the federal government—and that the defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If the class action proceeds, Misryoum editorial desk noted the court-appointed lead plaintiff would be the investor with the largest financial interest in the relief sought who is adequate and typical of class members. Any putative class member may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member—your ability to share in any recovery, the reminder says, is not affected by that choice. The firm also says it encourages whistleblowers, former employees, shareholders, and others to contact it with information about Zynex’s conduct.
One small real-world detail tucked into my own reading of the announcement: there was that moment when you notice the date—April 21, 2026—like a calendar notification you forgot to set. You still have to decide what to do with it. And whether you even want to be the one who reaches out.
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