Zynex Shareholder Sues Board, Execs Over Insurer’s Payment Pause

Zynex Inc. management let the medical device company overbill insurers to juice up revenue, prompting its largest insurance customer to pause payments while it scrutinized past claims, and causing a 51% stock drop, a shareholder lawsuit said.

Executives and board members let Zynex release misleading statements touting its financial performance, concealing an oversupply scheme in which it sent excessive electrode pads and batteries to patients and overbilled insurers, said the shareholder derivative action filed Wednesday in the US District Court for the District of Colorado. They hurt Zynex’s reputation and wallet, said investor Patrick Ayers’ complaint.

Zynex said in a ...