Nutex Health Inc. (NUTX) Investigation

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.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the NUTX investigation about?

We are investigating whether Nutex may have misled investors about the propriety of steps taken in response to the NSA.

WHAT SHOULD I DO?

I worked at NUTX. What should I do?

If you were an employee of NUTX, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in NUTX, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any NUTX investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.