Core Viewpoint - A securities class action lawsuit has been filed against Ardent Health, Inc. following its poor Q3 2025 financial results, alleging misleading statements regarding revenue recognition and liability reserves [1][2]. Company Allegations - The lawsuit claims that Ardent misled investors about its revenue recognition systems and the adequacy of its professional liability reserves, urging affected investors to come forward [2][4]. - The complaint states that Ardent assured investors of an active monitoring process for accounts receivable, which was misleading as the company primarily used a 180-day cliff for reserving accounts [4][5]. Financial Impact - On November 12, 2025, Ardent disclosed a transition to a new accounting method that resulted in a revenue reduction of $42.6 million due to hindsight evaluations [5][6]. - The company's CFO indicated that the new accounting system recognized reserves earlier in an account's life cycle, contrasting previous assurances [6]. - Additionally, Ardent 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]. Market Reaction - Following the announcement of the financial results and the new accounting method, Ardent's share price fell by $4.75, a decrease of 33% [6]. Investigation and Whistleblower Information - Hagens Berman is investigating whether Ardent was aware of issues with its revenue accounting system that concealed payor denials [7]. - Whistleblowers with non-public information regarding Ardent Health are encouraged to assist in the investigation, with potential rewards under the SEC Whistleblower program [8].
ARDT INVESTOR ALERT: Ardent Health (ARDT) Investors with Substantial Losses Have Opportunity to Lead the Ardent Health Class Action Lawsuit