Ardent Health Faces Class Action Lawsuit Over $90 Million Accounting Adjustments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Source: Globenewswire
- Financial Disclosure Crisis: Ardent Health's Q3 2025 financial report revealed approximately $90 million in accounting adjustments, causing the stock to plummet over 33% in mid-November, significantly impacting investor confidence and the company's market capitalization.
- Lawsuit Background: The class action lawsuit seeks to represent investors who purchased Ardent securities between July 18, 2024, and November 12, 2025, alleging that company leadership failed to disclose material weaknesses in internal controls related to revenue recognition and liability reserves, potentially leading to further investor losses.
- Revenue Recognition Issues: The lawsuit claims that Ardent did not timely write off uncollectible accounts stemming from third-party payor denials or uninsured patients, inflating accounts receivable and affecting the company's financial transparency and investor decision-making.
- Market Reaction: On November 12, 2025, Ardent disclosed a $42.6 million revenue decrease due to a change in accounting estimates, prompting a swift market reaction that saw shares drop $4.75, highlighting investor concerns over the company's financial health.
Analyst Views on ARDT
Wall Street analysts forecast ARDT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARDT is 13.96 USD with a low forecast of 10.00 USD and a high forecast of 17.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
4 Hold
1 Sell
Moderate Buy
Current: 9.210
Low
10.00
Averages
13.96
High
17.00
Current: 9.210
Low
10.00
Averages
13.96
High
17.00
About ARDT
Ardent Health, Inc., formerly Ardent Health Partners, Inc., is a provider of healthcare in mid-sized urban communities across the United States. Through its subsidiaries, the Company delivers care through a system of 30 acute care hospitals and approximately 280 sites of care with over 1,800 affiliated providers across six states. It provides both general and specialty services, including internal medicine, general surgery, cardiology, oncology, orthopedics, women’s services, neurology, urology, and emergency services, within inpatient and ambulatory care settings. In addition to its 30 acute care hospitals, it operates a network of ambulatory facilities and telehealth services, including primary care and specialty care clinics, ambulatory surgery centers (ASCs), urgent care centers, free-standing emergency departments, and diagnostic imaging centers. It operates a consumer-centric healthcare platform focused on creating relationships with its patients across multiple care settings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
