Dive Brief:

• A former Alignment Healthcare executive is accusing the company of accounting fraud that made Alignment appear more valuable than it is and triggered lucrative bonuses for senior leadership, according to a lawsuit filed Tuesday in a California district court.
• In the complaint, Hakan Kardes, Alignment’s former chief data and transformation officer, alleges he was forced out after discovering that the Medicare Advantage insurer had misclassified about $8 million to $10 million as capital expenditures instead of operating expenses in 2024, inflating Alignment’s reported profits and earnings trajectory.
• Alignment said the allegations are meritless and that an outside audit performed after Kardes raised his concerns confirmed the company’s accounting is reliable.

Dive Insight:

The whistleblower suit questions the validity of Alignment’s accounting statements in 2024 and 2025, periods in which the MA insurer — which bills itself as a tech-forward, senior-focused disruptor in the privatized Medicare program — began improving its profitability.

The accounting errors weren’t a mistake, according to Kardes’ complaint. Instead, Alignment executives were allegedly cooking the books.

Kardes joined Alignment in 2019 as the company’s first chief data officer before steadily expanding his role. In January 2025, Kardes was named Alignment’s chief transformation officer and was told he would be elevated further and given oversight of a substantial portion of Alignment’s data...

Read Full Story: https://news.google.com/rss/articles/CBMioAFBVV95cUxOM3ItYVdNMU81UlNqMGFGNFYx...