Case Page

 

Case Status:    SETTLED
On or around 02/26/2013 (Other)

Filing Date: April 06, 2009

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 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 the company 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 are approved 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 proposed settlement is in the amount of $2,500,000 in cash.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ZYXI
Company Market: OTC-BB
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Colorado
DOCKET #: 09-CV-00780
JUDGE: Hon. Robert E. Blackburn
DATE FILED: 04/06/2009
CLASS PERIOD START: 05/21/2008
CLASS PERIOD END: 03/31/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm, P.A. (New York)
    350 Fifth Avenue, Suite 5508, The Rosen Law Firm, P.A. (New York), NY 10118
    212.686.1060 212.202.3827 · lrosen@rosenlegal.com
  2. The Shuman Law Firm
    885 Arapahoe Avenue, The Shuman Law Firm, CO 80302
    303.861.3003 303.861.3003 ·
No Document Title Filing Date
COURT: D. Colorado
DOCKET #: 09-CV-00780
JUDGE: Hon. Robert E. Blackburn
DATE FILED: 04/19/2010
CLASS PERIOD START: 05/21/2008
CLASS PERIOD END: 03/31/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. The Shuman Law Firm
    885 Arapahoe Avenue, The Shuman Law Firm, CO 80302
    303.861.3003 303.861.3003 ·
No Document Title Filing Date
No Document Title Filing Date