Nutex Health (US:NUTX) Prnewswireยท2025-09-10 02:02Core Viewpoint - A class action lawsuit has been filed against Nutex Health Inc. for failing to disclose fraudulent activities related to its third-party arbitration vendor, HaloMD, which allegedly inflated revenues through deceptive practices [2][3]. Group 1: Allegations and Financial Impact - The lawsuit claims that Nutex Health Inc. did not disclose that HaloMD was involved in a scheme to defraud insurance companies, leading to unsustainable revenue figures [2]. - It is alleged that Nutex overstated its ability to address material weaknesses in its internal controls over financial reporting, affecting its accounting for stock-based compensation [2]. - Concerns were raised about Nutex's financial performance following a report from Blue Orca Capital, which suggested that the company's recent share price surge was artificially inflated due to HaloMD's practices [3]. Group 2: Stock Performance and Market Reaction - Following the announcement of a delay in filing quarterly financial statements due to incomplete accounting adjustments, Nutex's stock price dropped over 16% [4]. - The report from Blue Orca Capital indicated that if the revenue benefits from HaloMD's practices were to cease, Nutex's financial performance could significantly decline, potentially reverting its stock to lower levels [3].