Kaplan Fox probes Alignment Healthcare after whistleblower complaint, 16.7% stock drop

Law firms Kaplan Fox and Hagens Berman said they are investigating Alignment Healthcare after whistleblower accounting allegations and weaker near-term profitability guidance drove sharp share declines.

Summary

Kaplan Fox & Kilsheimer LLP and Hagens Berman Sobol Shapiro LLP said they are investigating potential securities law violations involving Alignment Healthcare, Inc. after a whistleblower complaint alleged the company misclassified millions of dollars of operating expenses as capital expenditures, potentially inflating reported and projected results including adjusted EBITDA in 2024 and 2025. Hagens Berman said it expanded its probe after Alignment's July 30, 2026 second-quarter earnings call, when management said it would reinvest recent outperformance into clinical infrastructure and market expansion for 2027 and 2028, with only about 30% of full-year adjusted EBITDA expected in the second half versus 40% a year earlier. Alignment shares fell $4.02, or 16.7%, to close at $20.03 on July 8, 2026, after the allegations emerged, and Hagens Berman said the stock was down nearly 45% over the past month.

Terms & Concepts
  • Adjusted EBITDA: A non-GAAP measure of earnings before interest, taxes, depreciation and amortization, used by companies and investors to assess operating performance.
  • Capital expenditures: Spending recorded as investment in long-term assets rather than as current operating costs; misclassification can overstate near-term profitability.
  • SEC Whistleblower program: A U.S. Securities and Exchange Commission program under which eligible whistleblowers providing original information may receive up to 30% of a successful SEC recovery.