Suit Says Zynex Directors' Deception Inflated Stock

Law360, New York (August 1, 2011, 2:32 PM EDT) -- Medical device manufacturer Zynex Inc. and its directors misled the public and shareholders by reporting increased revenues and product shipments, artificially inflating the company’s stock price, according to a shareholder derivative complaint filed Thursday in Colorado.

Investor Stephen Hatch lodged a complaint on behalf of the company, accusing Zynex’s senior officers of breaching their fiduciary duties by falsely certifying inaccurate earnings statements for the first three fiscal quarters of 2008. In reality, Zynex was only collecting a “small fraction” of the amounts reported, according to the...
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