02:41 PM EDT, 07/22/2025 (MT Newswires) -- Nutex Health ( NUTX ) shares were down over 10% in recent Tuesday trading after Blue Orca Capital published a report alleging that the company's share price surge was due to working with HaloMD, a firm engaged in "fraudulent practices."

Blue Orca said that Nutex shares rallied after the company began submitting most of its patient bills via an arbitration process specified in the No Surprises Act using a third-party vendor identified as Halo MD.

The investment firm, which said it has a short position in the company, said Halo MD is operated by a former Las Vegas entertainer.

Three lawsuits filed in federal court in recent weeks allege that HaloMD achieved "dramatically lucrative results" for clients such as 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," Blue Orca said.

Nutex and HaloMD did not immediately reply to requests for comment from MT Newswires.

Price: 99.61, Change: -11.58, Percent Change: -10.41