Core Viewpoint - A securities class action lawsuit has been filed against Ardent Health, Inc. following significant adverse accounting adjustments of approximately $90 million, leading to a stock price decline of over 33% [1] Group 1: Lawsuit Details - The lawsuit seeks to represent investors who acquired Ardent securities between July 18, 2024, and November 12, 2025 [1] - The lead plaintiff deadline for the lawsuit is set for March 9, 2026 [3] - The case is titled Postiwala v. Ardent Health, Inc. et al., No. 3:26-cv-00022 (M.D. Tenn.) [3] Group 2: Allegations and Investigations - Hagens Berman is investigating claims that Ardent's leadership failed to disclose material weaknesses in internal controls related to revenue recognition and liability reserves [2] - The complaint alleges that timely writing off uncollectible accounts is crucial to avoid inflating accounts receivable [4] - The lawsuit claims that Ardent misled investors regarding its reliance on detailed reviews of historical collections for determining accounts receivable collectability [5] Group 3: Financial Disclosures and Market Reaction - On November 12, 2025, Ardent disclosed a $42.6 million decrease in revenue due to changes in accounting estimates and new information from hindsight evaluations [6] - The company's CFO revealed that a 180-day cliff was used for reserving accounts, contradicting earlier assurances about the collection procedures [6] - Following the disclosures, Ardent's stock price fell by $4.75, a decline of 33% [6] Group 4: Implications and Further Actions - The significant revenue reduction and reserve increase raise questions about whether these issues should have been disclosed earlier [7] - Hagens Berman encourages investors who suffered losses to contact the firm for potential recovery options [7]
Ardent Health (ARDT) Hit With Securities Class Action Amid Receivables and Reserves Issues Driving 33% Plunge - Hagens Berman