Nutex Health (NUTX) Faces Investor Lawsuit Over Alleged Revenue Inflation Scheme-- Hagens Berman

SAN FRANCISCO, Sept. 4, 2025 /PRNewswire/ -- Nutex Health Inc. (NASDAQ: NUTX), a publicly traded operator of micro-hospitals and healthcare facilities, is under legal scrutiny following a class-action lawsuit that accuses the company of orchestrating a deceptive billing strategy to artificially boost its financial results. The litigation, filed in a Texas federal court, alleges that Nutex collaborated with third-party billing firm HaloMD to submit ineligible insurance claims, misleading shareholders and triggering substantial losses.

Hagens Berman urges Nutex investors who suffered substantial losses to submit your losses now.

Class Period: Aug. 8, 2024 – Aug. 14, 2025
Lead Plaintiff Deadline: Oct. 21, 2025
Visit: www.hbsslaw.com/investor-fraud/nutx
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Alleged Scheme Involving Arbitration Windfalls

According to the complaint, Nutex and HaloMD engaged in a systematic effort to exploit the insurance arbitration process. The suit claims the companies submitted thousands of questionable claims, falsely certifying their validity to extract outsized reimbursements. These arbitration-driven revenues, the plaintiffs argue, were central to Nutex's reported financial performance but lacked long-term viability.

The complaint contends that Nutex's revenue model was built on unstable foundations, and that investors were misled by financial statements that failed to reflect the true nature of the company's operations.

Short-Seller Report Sparks Market Fallout

The allegations gained traction after activist short-seller Blue Orca Capital published a report on July 22, 2025, accusing HaloMD of orchestrating a "fraudulent scheme" to siphon millions from insurers. The report cited lawsuits filed by Anthem and Blue Cross Blue Shield affiliates, which claimed HaloMD overwhelmed the arbitration system with invalid claims.

Blue Orca warned that Nutex's reliance on arbitration reimbursements posed a significant risk, suggesting the company's stock could collapse to penny-stock levels. Following the report's release, Nutex shares dropped over 10%, reflecting investor unease.

Financial Controls Under Fire

Beyond the billing allegations, the lawsuit asserts that Nutex misrepresented its progress in addressing internal control deficiencies. Specifically, the company is accused of misclassifying stock-based compensation obligations—treating them as equity rather than liabilities—thereby distorting its financial position.

On July 24, Nutex issued a statement rejecting Blue Orca's claims and promised further clarification in its quarterly filing. However, on August 14, the company announced a delay in submitting its Form 10-Q, citing "non-cash accounting adjustments." The market reacted swiftly: Nutex shares plunged 16.39% the following day, closing at $92.91.

Restatement and Audit Committee Findings

The situation escalated on Aug. 21, when Nutex disclosed in a Form 8-K that its Audit Committee had determined certain prior financial statements required restatement. The committee found that obligations tied to hospital development had been incorrectly classified, necessitating revisions.

While Nutex offered a broad overview of its arbitration practices, the lawsuit claims the company failed to directly address the core accusations raised by Blue Orca. Nutex emphasized that it was not named in the lawsuits against HaloMD, but critics argue this sidesteps the substance of the concerns.

Legal Action and Investor Relief

The class-action suit seeks to recover damages for investors who acquired Nutex securities during the alleged misrepresentation period. Plaintiffs argue that the company's public disclosures were materially misleading, and that the eventual revelation of its true financial condition caused significant investor harm.

Hagens Berman Launches Probe

Law firm Hagens Berman Sobol Shapiro LLP is investigating the claims. Reed Kathrein, a partner at the firm, stated: "We're examining whether Nutex's business model was predicated on questionable arbitration tactics and whether its financial reporting practices misled investors." 

If you invested in Nutex and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Nutex case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Nutex should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP