Law Firm Opens Investigation Into Ardent Health's $97M Accounting Adjustments

GlobeNewswire Inc.GlobeNewswire Inc.
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Key Takeaway

Law firm Hagens Berman investigates Ardent Health for securities fraud over $97M accounting adjustments. Stock fell 33% after November disclosure of revenue revisions and reserve increases.

Law Firm Opens Investigation Into Ardent Health's $97M Accounting Adjustments

Hagens Berman has initiated an investigation into securities fraud claims against Ardent Health Services, Inc. (ARDT) regarding significant accounting adjustments revealed in November 2025. The healthcare company disclosed a $42.6 million revenue adjustment coupled with a $54 million increase in professional liability reserves, totaling approximately $97 million in restatements. The adjustments reportedly stem from a shift in the company's methodology for accounting for uncollectible accounts, moving to what plaintiffs characterize as a rigid 180-day cliff approach.

According to the investigation notice, Ardent Health's revised accounting method represents a departure from prior disclosures indicating the company conducted detailed historical reviews to determine reserve adequacy. The abrupt shift in approach and magnitude of the adjustments raised questions about whether previous financial statements adequately reflected the company's true financial position. The market responded sharply to the announcement, with ARDT shares declining approximately 33% from their pre-disclosure levels.

Investors who purchased Ardent Health securities during the relevant period and wish to participate in the investigation have until March 9, 2026, to establish their status as lead plaintiffs. The investigation examines whether company leadership failed to disclose material information regarding accounting practices and the financial impact of the methodological change prior to November 2025.

Source: GlobeNewswire Inc.

Back to newsPublished Feb 16

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