Shares of Alignment Healthcare Inc. (ALHC) fell 17% on Wednesday after a former executive reportedly filed a whistleblower lawsuit accusing the Medicare Advantage insurer of manipulating its financial results to inflate key performance metrics tied to its stock price and executive pay.
The stock clocked its worst day since February 2024.
Whistleblower Alleges Accounting Irregularities
Hakan Kardes, who served as Alignment’s chief data and transformation officer from 2019 until 2025, claims in the suit filed in U.S. District Court for the Central District of California that the company forced him to resign after he reported alleged accounting fraud to other executives. According to Modern Healthcare, Kardes alleges that Alignment misclassified operating expenses as capital costs, artificially boosting its 2024 and 2025 adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
The complaint describes the actions as a “...
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