Zynex Inc (OTC: ZYXI) Investor Securities Class Action Lawsuit 04/06/2009

If you purchased shares of Zynex Inc (OTC: ZYXI), you might have certain options and should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Zynex
Case Name: 
Zynex Inc Shareholder Class Action Lawsuit 04/06/2009
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
OTC: ZYXI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/06/2009
Class Period Begin: 
05/21/2008
Class Period End: 
03/31/2009
Court of Filing: 
U.S. District Court for the District of Colorado
Deadline To File for Lead: 
06/05/2009
Date Settled: 
09/14/2012
Settlement Amount: 
$2,500,000
Deadline to Participate in Settlement: 
10/01/2012
Settlement Notice: 
Settlement Proof: 
Summary: 

February 26, 2013 - The court granted the plaintiffs' motion to distribute class settlement funds.

January 31, 2013 - Plaintiffs filed a motion to distribute class settlement funds.

September 14, 2012 - The court approved the settlement, entered the orders approving the plan of allocation, class certification, the motion for attorneys' fees and expenses, and dismissed the action with prejudice.

April 18, 2012 - The court preliminarily approved the settlement.

November 11, 2011 - Parties filed stipulation of settlement.

March 30, 2011 - The court denied the defendants' motion to dismiss.

May 17, 2010 - Defendants filed a motion to dismiss.

April 19, 2010 - The lead plaintiffs filed an amended consolidated complaint.

April 10, 2009 - Another investor filed a complaint.

March 3, 2010 - The lead plaintiffs and lead council were appointed and all cases were consolidated.

June 8, 2009 - Lead plaintiff motions were filed.

May 11, 2009 - Class certification motions were filed.

April 6, 2009 - An investor in shares of Zynex Inc (OTC:ZYXI) filed a lawsuit in the U.S. District Court for the District of Colorado against Zynex Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between May 21, 2008 and March 31, 2009.

According to the complaint, the plaintiff alleges that Zynex Inc, its CEO , and CFO violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with Zynex Inc's issuance of allegedly materially false financial statements to the investing public between May 21, 2008 and March 31, 2009. According to the complaint, the Defendants, in violation of the Generally Accepted Accounting Principles and Zynex Inc's own internal polices, misstated Zynex Inc's reported net revenues and accounts receivable for the first three quarters of fiscal 2008.

On April 1, 2009 Zynex Inc 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. Zynex, Inc. announced that it believed the cumulative impact of these adjustments would be $5.1 million. This adverse news caused Zynex Inc's stock (OTC: ZYXI) price to decline, so the lawsuit.

On May 3, 2012 there was a proposed $2,500,000 settlement in the Zynex Inc shareholders class action. According to the Notice, the securities and time period were for Zynex Inc (OTC: ZYXI) common stock purchased between May 21, 2008 and March 31, 2009, inclusive.

Settlement Fund: $2,500,000 in cash. Your recovery will depend on the amount of stock purchased on or between May 21, 2008 and March 31, 2009 and the timing of your purchases and any sales. If claims are submitted for 100% of the number of eligible shares and options (which is not expected to occur), the estimated average distribution per share of common stock will be approximately $0.308 before deduction of Court-approved fees and expenses. Historically, actual claim rates are less than 100% and result in higher distributions.

Settlement Class: The Court has certified for purposes of this settlement a Settlement Class of all Persons who purchased Zynex Inc (OTC: ZYXI) common stock between May 21, 2008 and March 31, 2009, inclusive (Class). Excluded from the Class are Defendants, members of the immediate families of the Individual Defendants, any entity in which any Defendant has or had a controlling interest, current or former directors and officers of Zynex Inc, and the legal representatives, heirs, successors, or assigns of any such excluded person or entity. Also excluded from the Class are those Persons who timely and validly request exclusion from the Class pursuant to the Notice of Pendency and Proposed Settlement of Class Action.

Reasons for Settlement: Avoids the costs and risks associated with continued litigation, including the danger of no recovery, and provides a substantial benefit to the Class now.