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Nutex Health Inc., a healthcare facility management company operating 24 hospitals and multiple population health and real estate divisions, is facing a proposed shareholder class action lawsuit alleging that the company concealed fraudulent activities by its third-party vendor, HaloMD. The suit claims these actions may have affected Nutex's balance sheet and share price.

Filed Friday by shareholder Anjana Bhagavan, the complaint highlights Nutex's reliance on third-party payors for more than 90% of its net patient service revenue. Following the implementation of the No Secrets Act in 2022, Nutex engaged HaloMD in 2024 to assist with the independent dispute resolution process for out-of-network claims.

Bhagavan’s complaint alleges that Nutex’s revenues linked to HaloMD’s work were unsustainable and that a short seller accused HaloMD of producing fraudulent results. The suit also notes that Nutex previously announced the vendor’s engagement without identifying HaloMD by name and promoted the success of the arbitration strategy, claiming between 60% and 70% of billable visits were submitted for arbitration monthly.

On July 22, Blue Orca Capital published a report alleging that HaloMD achieved “dramatically lucrative results” by submitting false eligibility evidence to insurers and is facing litigation from insurance companies, including Blue Cross Blue Shield of Georgia, which claims HaloMD’s actions cost nearly $6 million. Following the report, Nutex’s shares dropped approximately 10% to $100.01 per share.

Bhagavan alleges that Nutex has not directly refuted the claims and that company executives, including CEO Thomas T. Vo, CFO Jon C. Bates, and President Warren Hosseinion, acted with actual knowledge of wrongdoing or reckless disregard, in violation of the Exchange Act.

Bhagavan is represented by Jeremy A. Lieberman and J. Alexander Hood II of Pomerantz LLP, and Corey D. Holzer of Holzer & Holzer LLP. Nutex and the individual defendants have not responded to comment requests.