Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a
class action lawsuit in the United States District Court for the
District of Colorado on behalf of a class consisting of all persons or
entities who purchased or otherwise acquired the securities of Zynex,
Inc. (OTCBB:ZYXI)(formerly Zynex
Medical Holdings, Inc.)(OTCBB:ZYNX)
between May 21, 2008 and March 31, 2009, inclusive (the “Class Period”).
A copy of the Complaint is available from the court or from Glancy
Binkow & Goldberg LLP. Please contact us by phone to discuss this action
or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at
(888) 773-9224, by email at info@glancylaw.com,
or visit our website at http://www.glancylaw.com.
The Complaint charges Zynex and certain of the Company's executive
officers with violations of federal securities laws. Zynex engineers,
manufactures, markets and sells medical devices for the electrotherapy,
and stroke and spinal cord injury rehabilitation markets primarily in
the United States. The Complaint alleges that throughout the Class
Period defendants knew or recklessly disregarded that their public
statements concerning Zynex’s financial performance were materially
false and misleading. Specifically, the Complaint alleges that
defendants misrepresented and/or failed to disclose material adverse
facts concerning the Company’s financial performance, in violation of
Generally Accepted Accounting Principles and the Company’s own revenue
recognition policies, which caused the Company to overstate its net
accounts receivable and net income for the first three quarters of the
fiscal year ended December 31, 2008.
On April 1, 2009, Zynex issued a press release disclosing that the
Company’s financial results and earnings press releases for the first
three quarters of 2008 can no longer be relied upon. The April 1, 2009,
press release further disclosed that “adjustments identified in
connection with the year-end closing and 2008 year end audit result in a
decrease in net accounts receivable and related net revenues of
approximately $5.1 million as of and for the year ended December 31,
2008...based on a re-evaluation of the estimated allowance for provider
discounts that management believes should have been utilized in 2008.”
This news shocked the market, causing Zynex shares to decline $0.65 per
share, or approximately 56% from the previous day’s closing price of
$1.15, to close on April 1, 2009 at $0.50 per share.
Plaintiff seeks to recover damages on behalf of class members and is
represented by Glancy Binkow & Goldberg LLP, a law firm with significant
experience in prosecuting class actions, and substantial expertise in
actions involving corporate fraud.
If you are a member of the class described above, you may move the
Court, no later than June 8, 2009, to serve as lead plaintiff, however,
you must meet certain legal requirements. If you wish to discuss this
action or have any questions concerning this Notice or your rights or
interests with respect to these matters, please contact Michael
Goldberg, Esquire, or Richard A. Maniskas, Esquire, of Glancy Binkow &
Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles,
California 90067, by telephone at (310) 201-9150 or Toll Free at (888)
773-9224 or by e-mail to info@glancylaw.com.
Glancy Binkow & Goldberg LLP, Los Angeles
Lionel Z. Glancy,
Michael Goldberg or Richard A. Maniskas
310-201-9150 or 888-773-9224
info@glancylaw.com
www.glancylaw.com
