Nutex Health (NUTX) Shares Fall Amid Critical Blue Orca Report -- Hagens Berman

SAN FRANCISCO, July 28, 2025 /PRNewswire/ -- On July 22, 2025, investors in Nutex Health Inc. (NASDAQ: NUTX) saw the price of their shares significantly fall after activist investment firm Blue Orca Capital published a critical report about Nutex and its involvement with independent dispute resolution ("IDR") vendor HaloMD.

Blue Orca's accusations have prompted national shareholders rights firm Hagens Berman to open an investigation into whether Nutex may have misled investors about the propriety of steps taken in response to recent federal protections for consumers and urges Nutex investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Visit: www.hbsslaw.com/investor-fraud/nutx

The No Surprises Act ("NSA"), Impact on Nutex, Third-Party IDR Vendor, Revenue Recognition

On January 1, 2022, the NSA, whose purpose was to protect consumers from unexpected medical bills (particularly those stemming from out-of-network care) took effect.

After the NSA became effective, Nutex's average payment by insurers of adjudicated patient claims by date of service for emergency services declined by about 26% at the end of 2022 and by about 19% at the end of 2023. The company has said that "[i]n our experience insurers often initially pay amounts lower than the QPA [qualifying payment amount] without regard for other information relevant to the claim[]" and "[t]his requires us to make appeals using the IDR process."

Accordingly, on July 1, 2024, Nutex engaged an unnamed third-party IDR vendor to support all of the company's out-of-network claims and determine which of them would be beneficial to arbitrate.

Nutex said in its March 31, 2025, annual report that it refined its estimate of revenue recognition timing, particularly as to claims subject to arbitration. The company also said that "[t]his change in estimate increased revenue and net income before tax for the year ended December 31, 2024 by approximately $169.7 million and $112.0 million, respectively."

Nutex Health Inc. (NUTX) Investigation:

The propriety of Nutex's use of the particular IDR vendor and refined revenue timing may have come into question on July 22, 2025, when Blue Orca published a report which concludes "Nutex will return to penny stock status" and "we do not see how Nutex is investable."

Blue Orca first observed that "[t]he crackdown on surprise billing resulted in Nutex reporting large operating and net losses in 2022 and 2023, leading its market cap to plunge to less than $30 million" and "Nutex appeared to be on death's door."

Blue Orca then identified Nutex's IDR vendor as HaloMD, "a billing consulting company led by former Las Vegas stripper and Apprentice contestant Alla Laroque[]" and found that "Three Recent Bombshell Lawsuits Accuse HaloMD of Theft, Fraud, and Racketeering by Allegedly Flooding System with Ineligible Arbitration Claims at Inflated Rates."

Although Nutex was not named in the lawsuits, Blue Orca said "we believe these lawsuits are the first of what may be a tidal wave of litigation against HaloMD and its clients, and it may only be a matter of time before Nutex itself is targeted."

The bottom line, according to Blue Orca, is that a majority of Nutex's recognized revenue "may be uncollectible" and "Nutex has a massive receivables balance of uncollected awards, putting the Company particularly at risk." 

This news drove the price of Nutex shares sharply lower on July 22, 2025.

"We're investigating whether Nutex may have misled investors about the propriety of steps taken in response to the NSA," said Reed Kathrein, the Hagens Berman partner leading the investigation.

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 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