Zynex (ZYXIQ) enters non-prosecution agreement; admits fraud, penalty $5M-12.5M

ZYNEX INC

DOJ agreed not to prosecute Zynex for healthcare fraud and securities fraud under prior management; company admitted responsibility.
Criminal monetary penalty of $5M to $12.5M based on earnings; forfeits ~$98M in unpaid claims billings.
NPA effective subject to bankruptcy court approval; company in Chapter 11 since Dec 2025.
Former CEO Thomas Sandgaard indicted Jan 2026; new management implemented enhanced compliance reforms.
Company expects to emerge from Chapter 11 in next few months.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

ZYNEX INC entered into NPA with U.S. Attorney’s Office for the District of Rhode Island valued at a criminal monetary penalty of between $5 million and $12.5 million (effective 2026-02-17).

Action: entry
Agreement: settlement
Counterparty: U.S. Attorney’s Office for the District of Rhode Island
Value: a criminal monetary penalty of between $5 million and $12.5 million
Effective: 2026-02-17

Exact text from the filing

On February 17, 2026, Zynex, Inc. (the “Company”) and Zynex Medical, Inc. (“Zynex Medical”) entered into a non-prosecution agreement (the “NPA”) with the U.S. Attorney’s Office for the District of Rhode Island (the “Goverment”) under which the Government agreed not to prosecute the Company for covered conduct related to, among other things, health care fraud, securities fraud and other related conduct occurring primarily between 2017 and August 2025 under prior Company management, subject to the Company’s full compliance with the terms and conditions of the NPA.

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303 material agreements filed in the last 30 days. Browse all material agreements →

Source: SEC EDGAR

accession 0001104659-26-017102

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