#USA #San Francisco #Hagens Berman #Revenue Cycle #Ardent Health

Hagens Berman Initiates Investigation into Ardent Health

In a significant legal development, the well-known national shareholder rights law firm Hagens Berman has taken an active stance in scrutinizing Ardent Health, Inc. (NYSE: ARDT). This follows alarming revelations about the company’s revenue recognition practices and a staggering adjustment of $97 million in financial reports, which has raised serious concerns among investors. The firm has issued an updated warning to investors regarding crucial deadlines in a pending securities class action suit concerning the company.

Allegations Against Ardent Health

Hagens Berman’s investigation centers around claims that Ardent Health has misled its investors. The allegations assert that the company provided false assurances about its revenue recognition systems and inadequacies in its professional liability reserves. Investors were reportedly assured that Ardent relied on comprehensive historical data analyses to evaluate its receivables. However, a shocking disclosure was made in November 2025 when the company acknowledged a different method involving a “180-day cliff” for reserves instead of the detailed reviews it claimed to utilize. This revelation was a critical turning point, as it precipitated a significant 33% drop in the company’s stock price.

Hagens Berman partner Reed Kathrein, who is leading the investigation, highlighted the firm’s concerns that Ardent’s reported systems for monitoring receivables might function as a facade, prioritizing mechanical write-offs while ignoring ongoing payor denials.

Key Issues in the Litigation

The pending class action lawsuit notes several crucial allegations against Ardent Health and its executives, including:

• - The 180-Day Cliff Policy: The lawsuit asserts that contrary to their claims of thorough analyses, the company was primarily using a method that fully reserved accounts only after they had reached 180 days. This practice provided Ardent the ability to report artificially inflated receivables during the class period, creating a deceptive image of financial health.
• - Insufficient Insurance Reserves: It is alleged that Ardent did not maintain adequate reserves for professional malpractice liability insurance, which further compounded its financial troubles, leading to significant doubts about the company's integrity and governance.
• - Revenue Adjustments: On November 12, 2025, the company unveiled a transition to a new accounting mechanism for estimating account collectability, a shift that led to a drastic revenue reduction by $42.6 million due to hindsight adjustments. This change underscored the discrepancies between actual and expected revenue, prompting questions about Ardent's financial forecasting and reporting accuracy.
• - Stock Price Collapse: The disclosures regarding the new accounting methods along with the sudden increase in professional liability reserves—amounting to $54 million in connection with recent settlements and ongoing litigations—led to a significant decline in the firm’s stock price, which plummeted nearly 34%.

What’s Next for Investors?

Hagens Berman urges investors who have experienced financial losses due to their investments in Ardent Health shares during the period from July 18, 2024, to November 12, 2025, to come forward. The deadline to file for lead plaintiff status is set for March 9, 2026, highlighting the urgency for affected investors.

Regarding the ongoing investigation, Hagens Berman encourages anyone with relevant non-public information about Ardent Health’s operations to consider participating in the investigation. The firm is committed to ensuring corporate accountability and protecting the rights of shareholders through transparent legal practices.

Hagens Berman’s Commitment to Justice

With a history of successfully advocating for shareholder rights, Hagens Berman has secured over $2.9 billion for clients in similar contexts. The firm has established a reputation for handling complex securities class actions and holds a strong track record of exposing corporate wrongdoings. Investors are advised to stay informed and seek guidance from legal professionals familiar with securities law when dealing with potential class action scenarios.

In conclusion, as the investigation unfolds, the focus on Ardent Health’s financial practices raises larger questions about corporate governance and transparency in the healthcare sector. Investors must remain vigilant while navigating these turbulent legal waters, ensuring their rights and investments are protected amidst ongoing investigations.