The law firm cited weaker near-term profitability guidance and whistleblower claims that operating expenses were misclassified as capital expenditures, potentially inflating adjusted EBITDA in 2024 and 2025.
Hagens Berman Sobol Shapiro LLP said it has broadened its investigation into Alignment Healthcare, Inc. after the company's shares fell sharply following its second-quarter 2026 report and amid whistleblower allegations about its accounting practices. The firm said it is examining potential securities law violations tied to whether Alignment Healthcare and certain executives misled investors about near-term profitability, expense management and financial reporting. The inquiry follows management's July 30 earnings call, where the company said it would reinvest recent outperformance into clinical infrastructure and market expansion for 2027 and 2028. Although full-year revenue guidance was adjusted, management said only about 30% of full-year adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is expected in the second half, down from 40% a year earlier, a shift that the release said triggered a sell-off in ALHC shares. Hagens Berman also pointed to a whistleblower complaint from a former employee who worked at Alignment from 2019 to 2025 and most recently served as chief transformation officer. The complaint alleges the company misclassified operating expenses as capital expenditures, which the firm said purportedly boosted adjusted EBITDA for 2024 and 2025 and inflated metrics linked to the stock price and executive compensation. Reed Kathrein, the Hagens Berman partner leading the investigation, said the firm is examining whether the company misled the market about its financial trajectory and internal health.