#United States #San Francisco #Hagens Berman #Ardent Health #accounting issues

Ardent Health Faces Major Investigation

In a dramatic turn of events, Ardent Health, Inc. (NYSE: ARDT) has found itself at the center of a securities law investigation led by the prominent shareholder rights law firm Hagens Berman. The inquiry was prompted by alarming revelations in the company's third quarter (Q3) 2025 financial disclosures, which indicated substantial adverse accounting adjustments amounting to $97 million. This revelation triggered a catastrophic 33% drop in the company's stock price, raising numerous questions regarding corporate governance and financial reporting practices.

Background to the Investigation

The investigation fundamentally questions whether Ardent Health’s leadership was aware of significant weaknesses in their internal controls, particularly around revenue recognition and liability reserves. Reed Kathrein, the leading partner at Hagens Berman, stated, "The sheer size of the $43 million revenue reduction and the $54 million reserve increase raises questions about whether these issues were long-standing problems that should have been presented to investors."

The specifics of the investigation focus on two key elements:

• - Revenue Estimates: The revenue was reduced by $43 million due to the apparent mismanagement of collectability estimates, related to chronic deny trends from payors.
• - Liability Reserves: A $54 million increase in professional liability reserves has sparked debates about whether prior period claim developments were accounted for appropriately following Generally Accepted Accounting Principles (GAAP) and SEC guidelines.

Legal Implications

As the investigation unfolds, it will delve into how the disclosures made on November 12, 2025, regarding the total combined adjustment of $97 million conflicted with previous assertions of the company’s financial health. Additionally, the firm scrutinizes the timing and adequacy of internal control measures regarding the ongoing issues with payor denials that have persisted within their accounting system.

The ramifications of these findings could be significant. Ardent Health’s drastic revisions to their 2025 Adjusted EBITDA guidance could point towards larger systemic issues within the company, suggesting a disconnect between the company’s reported performance and reality. With the combination of leadership awareness, past revenue shortfalls, and the undervaluation of liabilities, investors may have grounds for asserting claims of misrepresentation and securities fraud.

Current Developments and Next Steps

Hagens Berman is encouraging investors who have suffered losses due to the stock's drop to reach out. The firm boasts a robust history of securing over $325 billion in settlements for investors dealing with corporate misconduct. They intend to assist investors who acquired ARDT shares and experienced significant losses due to the undisclosed accounting problems.

Those with non-public information regarding Ardent Health are urged to consider their potential participation in the investigation or utilize the SEC Whistleblower program, which offers monetary rewards for original information that leads to successful recovery efforts.

For further inquiries, Reed Kathrein can be contacted at [email protected] or by phone at 844-916-0895.

About Hagens Berman

Founded with a commitment to corporate accountability, Hagens Berman is a global plaintiffs' rights law firm focusing on complex litigation. They have successfully represented investors and others wronged by corporate negligence, spearheading cases that have resonated with broader audiences. The firm's zealous pursuit of justice has helped secure more than $2.9 billion for clients affected by corporate wrongdoing. Find more about their ongoing efforts and updates by visiting hbsslaw.com and following them on social media @ClassActionLaw.