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]. Group 1: Allegations and Lawsuit Details - Hagens Berman is investigating claims that Ardent misled investors about its revenue recognition systems and the adequacy of its professional liability reserves [2]. - The lawsuit claims 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][6]. - The truth emerged on November 12, 2025, when Ardent disclosed a new accounting method that resulted in a revenue reduction of $42.6 million due to hindsight evaluations [5][6]. Group 2: Financial Impact and Market Reaction - Following the earnings call, Ardent's CFO revealed that the company's collectability framework utilized a 180-day cliff for reserving accounts, contradicting previous assurances [6]. - The company also reported an increase in total operating expenses as a percentage of total revenue, driven by a $47.2 million increase in professional liability reserves [6]. - The market reacted negatively, with Ardent's share price dropping by $4.75, or 33%, the day after the announcement [6]. Group 3: Investor Actions and Whistleblower Information - Investors who purchased Ardent securities between July 18, 2024, and November 12, 2025, and suffered losses are encouraged to contact Hagens Berman [2][4]. - Whistleblowers with non-public information regarding Ardent Health are urged to consider their options to assist in the investigation, with potential rewards under the SEC Whistleblower program [7].

Core Viewpoint - Ardent Health's Q3 2025 financial results significantly disappointed investors, leading to a 33% drop in share price after missing consensus EPS estimates and revealing adverse non-recurring items [1][4]. Financial Performance - The company reported an EPS of -$0.17, a decrease of 189% compared to the same period last year, which was well below market expectations [4]. - A $43 million adjustment was made that reduced revenue for the quarter due to a change in the estimation technique for accounts receivable collectability [4]. - Ardent Health increased its professional and general liability reserves by $54 million, attributed to adverse developments in prior period claims related to settlements and ongoing litigation [5]. - The adjusted EBITDA guidance for 2025 was significantly lowered to $530-$550 million from a previous range of $575-$615 million, marking a 9% decrease at the midpoint [5]. Market Reaction - Following the disappointing financial results, Ardent Health's share price fell sharply, reflecting investor concerns over the company's financial health and operational issues [5]. Legal Investigation - Hagens Berman, a shareholder rights law firm, has initiated an investigation into potential violations of federal securities laws by Ardent Health, focusing on the accuracy of the company's financial statements and internal controls [2][3]. - The investigation aims to determine if company leadership was aware of issues related to revenue accounting and whether the reserve increase was timely [6].