Ardent Health (ARDT) Hit With Securities Class Action Amid Receivables and Reserves Issues Driving 33% Plunge - Hagens Berman

SAN FRANCISCO, Jan. 9, 2026 /PRNewswire/ -- A securities class action lawsuit has been filed against Ardent Health, Inc. (NYSE: ARDT) following the company's Q3 2025 financial disclosures that revealed significant adverse accounting adjustments totaling about $90 million and sent the stock tumbling over 33% in mid-November.

The lawsuit seeks to represent investors who purchased or otherwise acquired Ardent securities between July 18, 2024 and November 12, 2025.

National shareholders rights firm Hagens Berman is investigating the claims alleged in the litigation, including that Ardent's leadership was aware of, but failed to disclose, material weaknesses in internal controls related to revenue recognition and liability reserves.

The firm urges investors in Ardent with substantial losses to submit your losses now.

Class Period: July 18, 2024 – Nov. 12, 2025
Lead Plaintiff Deadline: Mar. 9, 2026
Visit: www.hbsslaw.com/investor-fraud/ardt
Contact the Firm Now: [email protected]
                                       844-916-0895

The Ardent Health Inc. (ARDT) Securities Class Action:

The lawsuit, styled Postiwala v. Ardent Health, Inc. et al., No. 3:26-cv-00022 (M.D. Tenn.), focuses on Ardent's disclosures about the collectability of its accounts receivable, timely write-offs when necessary, and sufficiency of reserves.

According to the complaint, timely writing off uncollectible accounts stemming from claim denials by third-party payors, or underinsured or uninsured patients who are unable to pay their bills, is crucial because otherwise Ardent's accounts receivable balance would be inflated.

In the past Ardent assured investors that it engaged in an active monitoring process that included "detailed reviews of historical collections" and that "[o]ur collection procedures are followed until such time that management determines the account is uncollectible, at which time the account is written off."

Within the context of revenue recognition, the company assured investors that "[w]e rely on the results of detailed reviews of historical collections at facilities that represent a majority of our revenues and accounts receivable (the 'hindsight analysis') as a primary source of information[]" and "[w]e perform the hindsight analysis using utilizing twelve-month rolling accounts receivable data."

The complaint alleges that these- and other- statements were misleading because Ardent did not primarily rely on detailed reviews of historical reviews of historical collections in determining accounts receivable collectability, but instead utilized a 180-day cliff at which time an account became fully reserved.

The complaint alleges that investors learned the truth after the markets closed on November 12, 2025. That day, Ardent revealed "[d]uring the three months ended September 30, 2025, a change in accounting estimate resulting from a modification to the technique used to estimate the collectability of accounts receivable and new information provided by recently completed hindsight evaluations of historical collection trends resulted in a decrease in revenue of $42.6 million."

During the earnings call the next day, Ardent's CFO revealed that, in apparent contrast to earlier assurances about the hindsight analysis, the company's collectability framework "had used a 180-day cliff at which time an account became fully reserved" and that its new revenue accounting system "recognizes reserves earlier in an account's life cycle[.]"

In addition to the revenue decrease, Ardent revealed that "[t]he increase in total operating expenses as a percentage of total revenue was […] driven by an increase in professional liability reserves of $47.2 million[.]"

The market reacted swiftly to this news and sent the price of Ardent shares tumbling $4.75 (-33%) lower the next day.

"The sheer size of the $43 million revenue reduction and the $54 million reserve increase raises questions as to whether these were long-standing issues that should have been proactively disclosed to investors," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation. "We are scrutinizing the extent to which company leadership was aware of the apparent problems with the revenue accounting system and the chronic issue of payor denials. Investors who suffered significant losses should contact the firm now."

If you'd like more information and answers to frequently asked questions about the Ardent Health case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Ardent Health should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP