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

Class Action Lawsuit Against Nutex Health Inc.

On September 28, 2025, the Pomerantz Law Firm announced the filing of a class action lawsuit against Nutex Health Inc., known as Nutex, and several of its top executives. This case, lodged in the United States District Court for the Southern District of Texas, is now identified as case number 25-cv-03999. It involves a group of investors who bought Nutex securities between August 8, 2024, and August 14, 2025—a period described as the 'Class Period.' The lawsuit aims to recover damages related to claims that the company, along with key officers, violated federal securities laws, specifically under Sections 10(b), 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5.

Investors who purchased Nutex securities during the Class Period are urged to take action by October 21, 2025, if they wish to be appointed Lead Plaintiff in this case. Information regarding this legal action can be accessed through Pomerantz Law Firm’s website, where detailed insights into the complaint are available along with contact information for those interested in participating.

Background of Nutex Health Inc.

Nutex Health is a healthcare services provider that has been in operation since its public trading launch via a reverse merger in April 2022. The company has structured itself into three segments: a hospital division with 24 facilities across 11 states, a population health management division, and a real estate sector. Notably, Nutex primarily functions as an out-of-network provider, generating substantial revenue through patient contracts and agreements with various third-party payers, including commercial insurance and, in certain situations, Medicare and Medicaid. It has reported that over 90% of net patient service revenue derives from these third-party arrangements.

Historically, accessing care from out-of-network providers led to higher costs for patients, particularly when their health insurance plans covered only a fraction of the services billed. Patients often faced shocking balance bills stemming from the discrepancy between the charge from the out-of-network provider and what the insurer would pay. Such incidents prompted patient advocacy and legislative responses, notably the No Surprises Act (NSA) enacted in December 2020, effective from January 2022, which sought to eliminate unexpected out-of-network billing and its associated costs.

The NSA mandates that private health plans now cover out-of-network claims using in-network cost-sharing rates, with strict regulations to prevent healthcare providers from billing patients beyond these rates. It has also established an Independent Dispute Resolution (IDR) process to mediate payment amounts between insurers and providers when negotiations reach a stalemate. Under this framework, both parties present their proposed payment amounts to an arbitrator, who decides based on the median payments in the same geographical region.

Impacts of the No Surprises Act on Nutex

The introduction of the NSA initially posed challenges for Nutex's business model as it restricted the company's ability to charge higher prices for out-of-network services. Their emergency service payments reportedly declined by around 30% after the act's implementation, particularly witnessing a staggering 37% drop in physician service payments. To adapt, Nutex collaborated with a third-party IDR vendor, HaloMD, initiated in July 2024, to manage their out-of-network claims recovery efforts. Shortly afterward, Nutex began to highlight perceived successes from their partnership, claiming substantial revenue increases attributed to the arbitration process. However, these claims have since sparked scrutiny and criticism.

Allegations Against Nutex

The complaint against Nutex asserts that throughout the Class Period, the company's executives made numerous misleading statements about its business health and revenue streams. Specifically, the firm alleges that HaloMD was generating substantial arbitration winnings through potentially fraudulent methods, manipulating the IDR process to defraud insurance companies. Key accusations suggest that revenues stemming from these engagements were unsustainable and that Nutex overstated its efforts to address internal financial reporting weaknesses.

Additionally, a report from Blue Orca Capital released on July 22, 2025, further intensified scrutiny by alleging fraud in HaloMD's dealings. This report claimed HaloMD engaged in unethical practices, contributing to financial discrepancies while highlighting ongoing legal challenges faced by HaloMD from different insurance companies.

The fallout from these allegations significantly impacted Nutex's stock value, with shares plummeting more than 10% following the Blue Orca report, and further declines ensuing from the company's inability to effectively respond to these claims. On August 21, 2025, Nutex filed a form with the SEC stating discrepancies in past financial obligations related to hospital constructions, raising further red flags about its financial integrity.

As this class action progresses, investors and industry analysts will closely watch how Nutex navigates these complex legal waters while seeking to restore its reputation and operational stability.

Conclusion

The class action against Nutex Health Inc. underscores the critical importance of transparency and compliance within the healthcare sector, particularly amid evolving legislation like the No Surprises Act. As stakeholders await further developments, this case may serve as a bellwether for similar challenges faced by other healthcare providers operating in out-of-network spaces, highlighting the intricacies and potential pitfalls inherent to navigating regulatory landscapes in today’s healthcare environment.