Alignment Healthcare, Inc. NASDAQ: ALHC

What we're investigating

Henzel Law is investigating potential securities fraud claims on behalf of shareholders of Alignment Healthcare, Inc. (NASDAQ: ALHC), a Medicare Advantage insurer based in Orange, California. The investigation concerns whether the Company and certain of its officers made materially misleading statements about its adjusted EBITDA, its medical cost trends and the Medicare Star Ratings of its largest health plan contract. No lawsuit has been filed yet in this matter.

Background

On February 27, 2025, Alignment reported its 2024 results and announced its first full year of positive adjusted EBITDA as a public company, a reported $1.3 million. On July 8, 2026, news reports described a lawsuit filed by a former Alignment executive alleging that $8 million to $10 million of routine operating expenses were recorded as capital expenditures in 2024. Alignment's stock fell $4.02 per share, or 16.7%, to close at $20.03 that day. The Company has denied the allegations, has stated that an outside review found them to be without basis, and has asked the court to dismiss that lawsuit.

Further declines in July and September 2026

The stock fell again after the Company reported second-quarter results on July 30, 2026. On September 15, 2026, it fell 19.8% after management described higher third-quarter medical costs and $10 million to $11 million of additional second-half spending at an investor conference.

What happened on October 8, 2026

On October 8, 2026, the Centers for Medicare & Medicaid Services released its 2027 Star Ratings, lowering the Company's California HMO contract, which covers about 75% of its health plan members, from 4.0 stars to 3.5 stars and putting future quality bonus payments at risk. The stock opened about 20% lower on October 9, 2026, and closed at $7.55.

Who this may affect

Shareholders who purchased or otherwise acquired Alignment Healthcare, Inc. (NASDAQ: ALHC) securities between February 27, 2025 and October 8, 2026 and lost money may have been affected. That period is the firm's own estimate for purposes of this investigation. It has not been set or approved by any court. If you have questions about your Alignment Healthcare holdings, you are welcome to submit your information below for a free, no-obligation review.