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Events / Business / Zynex Bankruptcy and Fraud Indictments
Business securities fraud

Zynex Bankruptcy and Fraud Indictments

Analysis based on 35 articles · First reported Feb 24, 2026 · Last updated Apr 20, 2026

Sentiment
-75
Attention
6
Articles
35
Market Impact
General
Live prominence charts, article sentiment distribution, and event development timeline available on the Ergen Dashboard
Market Impact

The market is significantly impacted by the severe decline of Zynex's stock, leading to substantial losses for investors. The ongoing securities class action lawsuits by Faruqi & Faruqi and Hagens Berman, coupled with the bankruptcy filing and criminal indictments of former executives, highlight the risks associated with corporate fraud and lack of internal controls in the medical device industry.

Medical Devices Healthcare Legal Services
Event Summary

Zynex, a medical device company, is embroiled in a major scandal involving an alleged fraudulent overbilling scheme. The company is accused of shipping excessive products, inflating revenue, and filing false claims, which drew scrutiny from insurers like United States — Tricare. The Travelers Companies commenced an action against Zynex and its executives, Thomas Sandgaard and Anna Lucsok, seeking over $23 million in damages. Zynex reported a significant revenue shortfall in Q4 2024, leading to a 51.3% stock price drop. The company later acknowledged non-compliance with industry regulations, suspended guidance, and saw its stock fall another 45%. Former CEO Thomas Sandgaard and former COO Anna Lucsok were indicted for health care and securities fraud, resulting in their removal. Steve Dyson was appointed as the new CEO, and CFO Daniel Moorhead departed. Zynex subsequently filed for Chapter 11 bankruptcy and was delisted from the Nasdaq-100. Multiple securities law firms, including Faruqi & Faruqi and Hagens Berman, are pursuing class action lawsuits on behalf of investors who suffered significant losses.

Entities Involved
stock
Zynex
Zynex is facing multiple securities class action lawsuits, delisting from Nasdaq, and Chapter 11 bankruptcy due to an alleged fraudulent overbilling scheme. The company's stock price has plummeted, resulting in a near-total loss for common equity holders.
Importance 100.0 Sentiment -100.0
per
Thomas Sandgaard
Thomas Sandgaard, former CEO of Zynex, was indicted for health care and securities fraud, leading to his immediate removal from the company. He is also a defendant in the lawsuit filed by The Travelers Companies.
Importance 90.0 Sentiment -100.0
per
Anna Lucsok
Anna Lucsok, former COO of Zynex, was indicted for health care and securities fraud, leading to her immediate removal from the company. She is also a defendant in the lawsuit filed by The Travelers Companies.
Importance 90.0 Sentiment -100.0
oth
Fox (surname)
Fox, along with other defendants, is accused of being involved in Zynex's fraudulent overbilling scheme and is named in the lawsuit by Travelers.
Importance 80.0 Sentiment -80.0
govactor
United States — Tricare
United States — Tricare, the health insurance program for the U.S. military and Zynex's largest customer, temporarily suspended payments to Zynex due to a review of prior claims, which contributed to Zynex's financial downfall.
Importance 80.0 Sentiment 0.0
priv
Bronstein, Gewirtz & Grossman, LLC
Bronstein, Gewirtz & Grossman, LLC is the law firm that filed the class action lawsuit against Zynex, representing investors seeking to recover damages.
Importance 80.0 Sentiment 70.0
priv
Levi & Korsinsky
Levi & Korsinsky is the law firm notifying investors of the class action securities lawsuit against Zynex and is actively seeking lead plaintiffs.
Importance 70.0 Sentiment 50.0
priv
Faruqi & Faruqi
Faruqi & Faruqi is a national securities law firm investigating potential claims against Zynex and reminding investors of the deadline to seek lead plaintiff status in a federal securities class action.
Importance 70.0 Sentiment 20.0
priv
Hagens Berman
Hagens Berman is a national shareholder rights law firm notifying investors about a securities class action lawsuit filed against Zynex and its former executives.
Importance 70.0 Sentiment 20.0
stock
The Travelers Companies
The Travelers Companies commenced an action against Zynex and its executives, alleging a fraudulent overbilling scheme and seeking over $23 million in damages and civil penalties.
Importance 60.0 Sentiment 0.0
govactor
United States — United States District Court for the District of Colorado
The securities class action lawsuit, Beidel v. Sandgaard, et al., was filed in the United States — United States District Court for the District of Colorado against Zynex and its former top executives.
Importance 60.0 Sentiment 0.0
per
Dan Lucsok
Dan Lucsok is named as a defendant in the lawsuit against Zynex, implicated in the alleged fraudulent overbilling scheme.
Importance 60.0 Sentiment -70.0
per
Jon D. Fox
Jon D. Fox is named as a defendant in the lawsuit against Zynex, implicated in the alleged fraudulent overbilling scheme.
Importance 60.0 Sentiment -70.0
govactor
United States — Supreme Court of California
The Travelers Companies commenced an action against Zynex, Thomas Sandgaard, Anna Lucsok, and Fox in the United States — Supreme Court of California.
Importance 50.0 Sentiment 0.0
index
Nasdaq-100
Zynex was delisted from the Nasdaq-100 following the revelations of its overbilling scheme and subsequent bankruptcy filing.
Importance 50.0 Sentiment 0.0
+ 5 more entities View on Dashboard
Relationships
Zynex related ↔ Thomas Sandgaard
Zynex investigated provider ↔ United States — Tricare Zynex is a medical device provider that bills the US government's Tricare program. The relationship is currently adversa
Zynex related ↔ The Travelers Companies
Thomas Sandgaard unaffiliated ↔ United States — Tricare Thomas Sandgaard has no direct personal relationship with Tricare; any interactions are strictly mediated through his ro
Thomas Sandgaard related ↔ The Travelers Companies
United States — Tricare related ↔ The Travelers Companies
Bronstein, Gewirtz & Grossman, LLC related ↔ Levi & Korsinsky
Bronstein, Gewirtz & Grossman, LLC competitor ↔ Faruqi & Faruqi Bronstein, Gewirtz & Grossman, LLC is a securities litigation law firm that directly competes with Faruqi & Faruqi to re
Bronstein, Gewirtz & Grossman, LLC related ↔ Hagens Berman
Levi & Korsinsky related ↔ Faruqi & Faruqi
Levi & Korsinsky related ↔ Hagens Berman
Faruqi & Faruqi related ↔ Hagens Berman
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