#USA #Class Action #Texas #Pomerantz Law Firm #Nutex Health

Pomerantz Law Firm Initiates Class Action Against Nutex Health and Executives

On October 13, 2025, the Pomerantz Law Firm announced that it has filed a class action lawsuit against Nutex Health Inc., a healthcare services company, and several of its officers, for alleged violations of federal securities laws. This legal action is taking place in the United States District Court for the Southern District of Texas and addresses grievances concerning Nutex's business practices and financial reporting during a specific timeframe known as the Class Period, which spans from August 8, 2024, to August 14, 2025.

The lawsuit has been docketed as case number 25-cv-03999. It seeks to represent all individuals and entities, excluding the defendants, that purchased Nutex securities during the Class Period. Investors are looking to recover financial damages attributed to the defendants’ supposed misconduct as outlined in the Securities Exchange Act of 1934, specifically under Sections 10(b) and 20(a) and Rule 10b-5. Those interested in joining the class action have until October 21, 2025, to submit their request to the court for appointment as Lead Plaintiff.

Background of Nutex Health

Nutex Health Inc. is recognized as a physician-led healthcare service provider that commenced public trading via a reverse merger in April 2022. The company operates an array of facilities across three divisions: a hospital division featuring 24 hospitals in 11 states, a population health management division, and a real estate segment. Predominantly, Nutex functions as an out-of-network provider, generating substantial revenue through contracts with patients and various third-party payors, including commercial insurance. Reports indicate that nearly 90% of its net patient service revenue is sourced from these third-party payors.

Historically, patients receiving care from out-of-network providers risked incurring extra costs when health plans failed to cover the entire expenses, a situation further complicated due to balance billing practices. These extra charges caught many patients off guard, leading to significant financial burdens on them. This scenario prompted legislative action, notably the enactment of the No Surprises Act (NSA) in December 2020, aimed at eliminating surprises in out-of-network billing through reforms that mandate insurance coverage and in-network cost sharing.

The NSA took effect in January 2022 and was intended to shield patients from excessive charges while establishing a streamlined dispute resolution process to settle payment disagreements between healthcare providers and insurance companies.

Challenges Faced by Nutex Health Following NSA

When the NSA was implemented, Nutex Health faced substantial challenges as its capacity to charge premium prices diminished. Reports from March 2023 indicated that the average payment from insurers for emergency services claims had plummeted by about 30% post-NSA, complicating the company’s financial stability. To address this decline, Nutex sought to collaborate with a third-party independent dispute resolution (IDR) vendor named HaloMD in July 2024, aiming to facilitate the recovery of certain out-of-network claims.

In public statements, Nutex heralded the success of its arbitration strategy with HaloMD in boosting revenue. However, discrepancies began to surface regarding the legitimacy of these arrangements. Allegations surfaced claiming that HaloMD may have participated in fraudulent practices, manipulating the arbitration system to yield monetary results that were unsustainable for Nutex in the long run. Furthermore, Nutex has acknowledged having material weaknesses in its internal controls over financial reporting, casting doubts over its financial integrity.

The lawsuit centers around claims that Nutex and its executives knowingly engaged in actions that misrepresented the company's earnings potential, while failing to disclose critical information regarding the integrity and sustainability of revenues from its engagements with HaloMD. This includes misleading statements about its internal control measures and the potential for fraudulent activities.

Recent Developments and Market Response

In July 2025, a short report released by Blue Orca Capital leveled accusations against Nutex, citing the purported fraudulent scheme that resulted in excessive claims for reimbursements from insurance companies. The report led to a significant drop in Nutex's stock price, which fell by over 10% following the allegations. On August 14, 2025, Nutex further complicated matters by announcing a delay in filing its Form 10-Q report, citing reasons related to stock-based compensation treatment, which led to an additional decline in stock value.

As investors look towards a resolution, Pomerantz LLP continues to spearhead this class action, advocating for accountability and transparency in Nutex Health's operations. Interested parties may follow developments on this case through official channels or contact Pomerantz LLP for more information regarding participation in the class action.