Law Firm Announces Investigation Into Alignment Healthcare, Inc. Following Executive Lawsuit and CMS Rating Downgrade

Law firm Kahn Swick & Foti, LLC (KSF) has announced the initiation of an investigation into the officers and directors of Alignment Healthcare, Inc. (NasdaqGS: ALHC) following a whistleblower lawsuit and a subsequent rating downgrade by the Centers for Medicare & Medicaid Services (CMS). Shareholders and individuals with relevant information are being invited to contact the firm regarding potential breaches of fiduciary duties or violations of law.

According to the announcement, the investigation follows a series of public developments concerning the company:

• Whistleblower Lawsuit: On July 8, 2026, reports surfaced regarding a lawsuit filed by a former Alignment executive. The suit alleges that the company deliberately misclassified between $8 million and $10 million in routine operating expenses as capital expenditures. The lawsuit claims this maneuver boosted adjusted EBITDA, artificially inflated stock prices and executive compensation, and enabled the company to report its first full year of positive adjusted EBITDA as a public company.
• Conference Comments: On September 15, 2026, at the Baird Global Healthcare Conference, an executive declined to comment on the company's Star Ratings positioning, stating they could not talk about it.
• CMS Rating Downgrade: On October 8, 2026, Alignment disclosed that CMS had downgraded the Star Rating for its H3815 contract to 3.5. This change renders the plan ineligible for quality bonus payments in fiscal 2028. Following these disclosures, the company's share price experienced a significant decline.

Focus of the Investigation and Practical Implications

KSF's investigation is currently examining whether Alignment's officers and/or directors breached their fiduciary duties to shareholders or violated state or federal laws.

• For Investors: Long-term shareholders and investors affected by the share price decline may review their legal rights.
• How to Verify: Interested parties can verify the original announcement through official press release channels or visit the KSF website at https://www.ksfcounsel.com/cases/nasdaqgs-alhc/ for more details.
• Contact Information: Individuals with relevant information can contact KSF toll-free or via email as provided in their public disclosures.

*Disclaimer: This article summarizes a public announcement regarding an ongoing legal investigation. No wrongdoing has been proven in court, and the investigation remains open.*