Kahn Swick & Foti Opens Inquiry Into Alignment Healthcare Board
The firm cited a whistleblower suit over expense classification and an October 2026 Medicare Star Rating cut that left one plan out of quality bonus payments.
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Kahn Swick & Foti, LLC said on October 30, 2026 that it has opened an investigation into Alignment Healthcare, Inc., the Medicare Advantage insurer traded on Nasdaq under ALHC, according to a statement distributed by PR Newswire.
The New Orleans firm, which counts onetime Louisiana attorney general Charles C. Foti, Jr. among its partners, said it is examining whether Alignment's officers or directors breached fiduciary duties to shareholders or broke state or federal law.
The announcement pointed to three events. On July 8, 2026, accounts surfaced of a whistleblower suit by a former company executive claiming Alignment booked $8 million to $10 million of ordinary operating costs as capital spending, lifting adjusted EBITDA and supporting the stock and executive pay. At the Baird Global Healthcare Conference on September 15, 2026, an executive identified as Kao said of the company's Star Ratings position, "I cannot talk about it at all." On October 8, 2026, Alignment said federal regulators had cut the Star Rating on its H3815 contract to 3.5, disqualifying the plan from quality bonus payments in fiscal 2028.
The firm said the share price fell sharply after those disclosures.
This story was first reported by PR Newswire.
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