Ardent Health Facing Class Action Lawsuit After Stock Plunges 33%

Ardent Health Facing Class Action Lawsuit After Stock Plunges 33%

2026-01-17 companies

New York, Friday, 16 January 2026.
Investors face a critical March 9 deadline to join a securities fraud lawsuit against Ardent Health. The complaint alleges the company concealed failing revenue collection processes behind misleading accounting practices, triggering a massive sell-off that erased a third of the stock’s value overnight.

Allegations of Misleading Accounting

Multiple law firms, including The Rosen Law Firm and Bleichmar Fonti & Auld LLP, have filed or are investigating class action lawsuits on behalf of investors who purchased Ardent Health, Inc. (NYSE: ARDT) securities between July 18, 2024, and November 12, 2025 [1][5]. The core of the complaint rests on the company’s revenue recognition methods. While defendants allegedly assured shareholders that Ardent employed an active monitoring process utilizing “detailed reviews of historical collections” as a primary information source, the lawsuits claim the company actually relied on a “180-day cliff” where accounts were not fully reserved until they reached that age [1][5]. This discrepancy suggests that the company may have recognized reserves far later in an account’s life cycle than implied by their public statements [4].

Financial Fallout and Market Reaction

The discrepancies in Ardent Health’s financial condition came to light on November 12, 2025, when the company released its third-quarter financial results [3][6]. The disclosure revealed a significant $43 million adjustment that reduced revenue, which the company attributed to a modification in the technique used to estimate the collectability of accounts receivable [2][6]. Simultaneously, Ardent recorded a $54 million increase in its professional and general liability reserves, citing “adverse prior period claim developments” related to settlements and litigation from 2019 through 2022 [2][6]. Consequently, the company lowered its full-year 2025 adjusted EBITDA guidance to a range of $530 million to $550 million, a reduction from previous forecasts [2].

The securities class action, filed as Postiwala v. Ardent Health, Inc. et al. (Case No. 3:26-cv-00022) in the U.S. District Court for the Middle District of Tennessee, is currently pending [3][5]. Investors who purchased Ardent Health securities during the Class Period have until March 9, 2026, to move the Court to serve as lead plaintiff [1][2]. Participation in the lawsuit is based on the purchase of shares during the relevant period and does not require investors to sell their current holdings to be eligible [2]. Several firms, including Hagens Berman and Rosen Law Firm, are actively seeking shareholders with losses or whistleblowers with non-public information regarding the company’s internal controls [2][3].

Sources


Securities Litigation Shareholder Rights