#USA #San Francisco #securities lawsuit #Hagens Berman #Ardent Health

Ardent Health Targeted by Securities Class Action

Ardent Health, Inc. (NYSE: ARDT) is currently under scrutiny following a securities class action lawsuit filed by the prominent national shareholder rights firm Hagens Berman. This legal action arises from a significant downturn in the company's financial performance, particularly noted in their Q3 2025 results, and raises critical questions about the company's accounting practices and transparency.

The Class Action Background

The lawsuit alleges that Ardent Health misled its investors regarding its revenue recognition procedures and the sufficiency of its professional liability reserves. The period of concern spans from July 18, 2024, to November 12, 2025, during which investors who suffered significant financial losses are encouraged to reach out and participate in the ongoing investigation.

According to the filed complaint, Ardent had consistently communicated to its investors that it was diligently monitoring its accounts receivable through comprehensive historical collection reviews. However, the allegations suggest that the company didn’t follow these practices faithfully. Instead, it purportedly employed a 180-day accounting method to manage its receivables, which ultimately led to misleading statements about its financial health.

The breaking point came on November 12, 2025, when it was publicly revealed that Ardent had shifted to a new accounting methodology. This change resulted in a staggering revenue reduction of approximately $42.6 million, as the company had to reconsider its approach to evaluating collectability based on past performance.

During an earnings call held the following day, the Chief Financial Officer (CFO) of Ardent Health admitted that the funds expected from their accounts had not been accounted for in line with the promised meticulous approach. Instead, they used a method that prioritized accounting write-offs after a fixed period, contradicting earlier assurances made to shareholders.

Market Reaction and Next Steps

Unsurprisingly, the market reacted sharply to this significant news; Ardent’s shares plummeted by $4.75, translating to a 33% drop in value within just one trading day. Hagens Berman's investigations are probing whether Ardent's management had prior knowledge of issues within its revenue accounting processes that obscured certain payer-related denials.

The firm is emphasizing the urgency for investors who may have information related to this case to come forward, particularly those who are aware of any non-public information that could aid the investigation. Hagens Berman reminds potential whistleblowers that they might be eligible for rewards under the SEC's whistleblower program, encouraging individuals to reach out with valuable insights regarding Ardent's financial practices.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is recognized for advocating for investor rights and corporate accountability. Founded to represent those injured by corporate malpractice, the firm specializes in complex litigation and has amassed over $2.9 billion in settlements for clients. Those interested in following developments in this case or learning more about similar investigations can engage with the firm for resources and updates.

As the situation unfolds, investors and potential claimants remain on alert, analyzing the repercussions of this lawsuit and contemplating the broader implications surrounding corporate governance and investor trust in the healthcare sector.

For updates on how the situation progresses, interested parties are encouraged to keep an eye on developments from Hagens Berman and consider their options carefully during this pivotal time.