Nutex Health Hit With Investor Suits Alleging Arbitration-Fueled Revenue Inflation as Lead-Plaintiff Deadline Nears
Investors have until Oct. 21 to seek lead-plaintiff status in litigation tied to claims that Nutex relied on arbitration windfalls and faulty accounting.
Overview
- Bernstein Liebhard and Hagens Berman announced actions targeting Nutex Health over an alleged scheme with billing firm HaloMD to boost revenue through insurance arbitration.
- The class period identified in the filings spans Aug. 8, 2024 to Aug. 14, 2025, with cases filed in federal court and investor solicitations now underway.
- Complaints cite insurer lawsuits against HaloMD and allege thousands of questionable claims that produced outsized reimbursements presented as sustainable performance.
- Plaintiffs also allege Nutex misclassified stock-based compensation, with the company delaying its Aug. 14 Form 10-Q and later disclosing an Audit Committee determination that certain prior financials require restatement.
- A July 22 Blue Orca short report flagged the arbitration risks and preceded share declines of more than 10% that deepened after Nutex postponed its quarterly filing.