Zynex Shareholders Drop Leadership Suit After Bankruptcy Filing

Zynex Inc.‘s filing for bankruptcy protection means stockholders can no longer pursue allegations board members and former executives hid a practice of overbilling insurers, those plaintiff-investors told a federal judge in Denver.

Standing to sue is extinguished while the medical device company’s bankruptcy estate has the authority to bring claims on Zynex’s behalf, the shareholders told the US District Court for the District of Colorado. The investors voluntarily dismissed their derivative lawsuit, being overseen by Judge Nina Y. Wang, Wednesday. Zynex, which made wide management changes in the wake of insurance overbilling and false statement claims last ...