Blue Orca Capital short Nutex Health, says stock ‘un-investable’

In a recently published report, Blue Orca Capital said it is short Nutex Health (NUTX), “a reverse merger and one-time penny stock whose share price has surged more than 20x after it began submitting the majority of its patient bills to the arbitration process for settling out-of-network medical bills specified in the No Surprises Act using an unidentified third party IDR vendor.” The short seller adds that it has “identified this mystery consultant as HaloMD and discovered that it is run by a former Las Vegas stripper and reality TV contestant.” According to the report, “Three new lawsuits in federal court, all filed in recent weeks, allege that HaloMD achieved dramatically lucrative results for clients like Nutex by engaging in a coordinated fraudulent scheme to steal millions of dollars from insurance companies on behalf of and in conjunction with its healthcare billing clients. Although Nutex has not been sued (yet) and is not named in any of the three lawsuits, we believe that these bombshell lawsuits shed light on how HaloMD allegedly got its clients such high reimbursement rates from insurers.” Blue Orca believes that it may just be a matter of time before another suit is filed against HaloMD, this time including Nutex. “We believe NUTX stock is un-investable,” the report reads. Shares of Nutex are down almost 2% at $109.40 in afternoon trading.