Ardent Health Sued in Federal Securities Case Over Receivables and Malpractice Reserves Disclosures

Investors have until March 9 to seek lead-plaintiff status in a Tennessee lawsuit tied to November 2025 announcements that reduced revenue and raised liability reserves.

Overview

Postiwala v. Ardent Health, Inc., No. 3:26-cv-00022, is pending in the U.S. District Court for the Middle District of Tennessee on behalf of investors who bought shares between July 18, 2024 and November 12, 2025.
Complaints allege Ardent misstated how it assessed accounts receivable collectability, using a 180‑day cliff to delay reserving despite public statements about detailed historical reviews and management write-offs.
On Nov. 12, 2025, Ardent disclosed a $43 million Q3 revenue reduction after moving to the Kodiak RCA net revenue platform and conducting hindsight collection reviews that recognized reserves earlier in the receivable life cycle.
The company also increased professional liability reserves by $54 million tied to New Mexico claims and cut full-year 2025 EBITDA guidance by about $57.5 million, after which shares fell roughly 33% to close at $9.30 on Nov. 13.
Multiple plaintiff firms have filed or are soliciting investors ahead of the March 9, 2026 deadline, and Hagens Berman says it is investigating potential internal-control weaknesses related to revenue recognition and reserves.