Ardent Health Faces Legal Heat Over Financial Disclosures
Company Accused of Misleading Investors
Ardent Health, Inc. is under fire after a class action lawsuit was filed against the company and some of its top executives. The lawsuit follows the release of the company's Q3 2025 financial results, which left investors feeling deceived.
Allegations of Misleading Revenue Handling
The lawsuit claims Ardent misled investors about how it managed revenue and reserves. The company had publicly stated that it conducted a thorough review of past collections to determine which accounts were uncollectible. However, the lawsuit alleges that Ardent actually used a simple 180-day rule—after 180 days, an account was considered fully reserved.
Accounting Method Change Revealed
On November 12, 2025, Ardent disclosed that it had switched to a new accounting method. This change resulted in a $42.6 million reduction in revenue. The following day, during an earnings call, Ardent's CFO admitted that the company had been using the 180-day rule all along. This admission confirmed that the company's earlier statements were misleading.
Increase in Professional Liability Reserves
Additionally, Ardent revealed a $47.2 million increase in professional liability reserves. Investors reacted negatively, and the next day, Ardent's stock price dropped by $4.75, a 33% decrease.
Legal Action and Whistleblower Incentives
The law firm Hagens Berman, which is handling the case, is urging investors who purchased Ardent securities between July 18, 2024, and November 12, 2025, to come forward. The firm is investigating whether Ardent was aware of issues with its revenue accounting system.
Hagens Berman is also encouraging whistleblowers with non-public information to step forward. Whistleblowers could receive rewards of up to 30% of any successful recovery made by the SEC.
About Hagens Berman
Hagens Berman is a law firm specializing in corporate accountability. The firm has a strong track record, having recovered over $2.9 billion in similar cases.
Investors seeking more information about the case can visit the firm's website or contact them directly for details.
