National shareholder rights firm Hagens Berman has launched an investigation into Alignment Healthcare following a whistleblower lawsuit alleging systemic financial manipulation. The lawsuit, filed by former chief transformation officer Hakan Kardes, claims the company misclassified operating expenses as capital expenditures to inflate adjusted EBITDA for 2024 and 2025, boosting key performance metrics tied to stock price and executive compensation. Following the disclosure, Alignment Healthcare's stock fell approximately 16.7% in a single day, its worst performance since February 2024. The firm is investigating whether Alignment misled investors about its financial health and internal controls.
Alignment Healthcare LLCWhistleblower lawsuit and investigation into alleged financial manipulation, causing stock to fall 16.7%.