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 drop of over 33% [1][6][7] Group 1: Lawsuit Details - The lawsuit seeks to represent investors who acquired Ardent securities between July 18, 2024, and November 12, 2025 [1][2] - The case is titled Postiwala v. Ardent Health, Inc. et al., and focuses on Ardent's disclosures regarding accounts receivable collectability and reserves [3][6] Group 2: Allegations of Misconduct - The complaint alleges that Ardent's leadership was aware of material weaknesses in internal controls related to revenue recognition but failed to disclose them [2][8] - It is claimed that timely writing off uncollectible accounts is crucial to avoid inflating accounts receivable balances [4][5] Group 3: Financial Impact - 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 also reported a $47.2 million increase in professional liability reserves, contributing to a rise in total operating expenses as a percentage of total revenue [6][8] Group 4: Market Reaction - Following the financial disclosures, Ardent's stock price fell by $4.75, representing a 33% decline [7]
Ardent Health (ARDT) Facing Securities Class Action Amid Receivables and Reserves Issues Driving 33% Plunge - Hagens Berman