Zynex, Inc. is an American medical device manufacturer of electrotherapy devices.

The original Complaint charges the company, its CEO, and CFO (the "Defendants") with violations of the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with the Company's issuance of materially false financial statements to the investing public during the Class Period. According to the Complaint, the Defendants, in violation of the Generally Accepted Accounting Principles and the Company’s own internal polices, misstated the Company's reported net revenues and accounts receivable for the first three quarters of fiscal 2008.

On April 1, 2009 Zynex announced that its unaudited financial statements and press releases issued on results for the first three quarters of 2008 can no longer be relied upon and it would have to issue restated financial results to reflect adjustments to accounts receivable and net revenue for such periods. The Company announced that it believed the cumulative impact of these adjustments would be $5.1 million. This adverse news caused the Company’s stock price to fall dramatically, injuring Zynex's shareholders.

On March 3, 2010, Judge Robert E. Blackburn granted the motion to consolidate three related cases under a single lead case, and granted the motion to appoint John Trommald, Heather Trommald and Howard Makler as lead Plaintiffs and approved The Shuman Law Firm and Glancy Binkow & Goldberg LLP as co-lead Counsel. On April 10, 2010, the lead Plaintiffs filed a Consolidated Class Action Complaint, and on May 17, 2010, the Defendants responded by filing a motion to dismiss the Consolidated Class Action Complaint. The Defendants' motion was denied on March 30, 2011.

On November 11, 2011, a Stipulation of Settlement was filed. The Court granted preliminary approval of the Settlement on May 3, 2012. On September 14, the Court granted final approval of the Settlement and entered Final Judgment.