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Allegations
The filed complaint alleges that Zynex, Inc. made materially false and/or misleading statements and/or failed to disclose that: (1) Zynex shipped products, including electrodes, in excess of need; (2) as a result of this practice, the Company inflated its revenue; (3) the Company’s practice of filing false claims drew scrutiny from insurers, including the U.S. military health insurance program, Tricare; (4) 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 (5) 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.
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