BOULDER, Colo., April 15, 2009 (GLOBE NEWSWIRE) -- The Shuman Law Firm today announced that it has filed a lawsuit seeking class action status in the United States District Court for the District of Colorado on behalf of a class consisting of all persons or entities who purchased Zynex, Inc. (OTCBB:ZYXI) formerly known as Zynex Medical Holdings, Inc. (OTCBB:ZYNX) (collectively "Zynex" or the "Company") securities between May 21, 2008 and March 31, 2009 inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights and interests with respect to this matter, please contact Rusty E. Glenn toll free at (866) 974-8626 or email Mr. Glenn at rusty@shumanlawfirm.com.
The Complaint charges Zynex, its Chief Executive Officer Sandgaard, and Chief Financial Officer Allison (the "Defendants") with violations of the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with Zynex'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 Zynex'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 Zynex's stock price to fall dramatically, injuring Zynex shareholders.
If you are a member of the proposed class, you may request that the Court appoint you as lead plaintiff of the class no later June 8, 2009. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and derivative litigation.