Two Wall Street downgrades followed CMS’s 3.5-star 2027 rating for the Alignment Healthcare contract covering more than 75% of its health-plan members. ALHC opened to a roughly 20% decline, and an investigation into potential securities law violations is underway.

NEW YORK, Oct. 9, 2026 /PRNewswire/ — Alignment Healthcare, Inc. (NASDAQ: ALHC) shares opened down roughly 20% on October 9, 2026, after the Centers for Medicare & Medicaid Services (CMS) released its 2027 Medicare Advantage Star Ratings, lowering the Company’s California H3815 HMO contract to 3.5 stars from 4.0 stars. If you held ALHC shares when the ratings landed and lost money, you may have legal rights. Investors who suffered losses are encouraged to submit their ALHC loss details now. You may also contact Joseph E. Levi, Esq. via email at jlevi@SueWallSt.com or by telephone at (888) SueWallSt.

Alignment’s October 8 announcement reported that six of its seven eligible contracts earned four stars or higher. The seventh contract, H3815, covers more than 75% of its health-plan members and slipped from 4.0 to 3.5 stars. Reportedly, following the news, Bank of America and William Blair both cut their price targets and downgraded to neutral / market perform positions, with the latter cutting their price target by more than 60%.

Previously, during the Company’s most recent earnings call on July 30, 2026, CEO John E. Kao indicated that, despite the “shaky” “regulatory and legal footing” surrounding stars, he “felt good about [Alignment’s] position.” Additionally, Alignment’s share price had previously faltered on September 15, 2026, following comments at a Baird conference where CEO Kao reportedly refused to comment on the pending star rating decisions: “I cannot talk about it at all … we do not want to be the one poking the bear.”

Shareholders who lost money as ALHC repriced can share their trading losses with our team or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the ALHC Investigation

Q: How much did ALHC stock drop?A: Shares fell from a closing price of $8.71 on October 8, 2026, to an opening price of just $6.95 the following morning, an overnight decline of roughly $1.76 per share, or about 20%. Investors who purchased shares at allegedly inflated prices and suffered losses may be eligible to seek compensation.

Q: When did Alignment Healthcare allegedly mislead investors?A: The investigation concerns statements made before the October 8, 2026 disclosure of the 2027 Star Ratings. Those statements allegedly caused investors to purchase ALHC securities at inflated prices.

Q: Who is eligible to participate in the ALHC investigation?A: Investors who purchased ALHC stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses — not on whether you still hold the shares.

Q: What do ALHC investors need to do right now?A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible to participate in the investigation.

Q: What documents do I need to participate?A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What if I already sold my ALHC shares — can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought ALHC and sold at a loss may still participate in the investigation.

Q: What does it cost me to participate?A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in any resulting action, these matters are generally handled on a contingency basis. Any attorneys’ fees and expenses are subject to court approval.

Q: Do I need to go to court or give testimony?A: No. Participating in the investigation does not require court appearances or depositions. If legal action is later pursued, the overwhelming majority of affected investors never appear in court either.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@SueWallSt.com

Tel: (888) SueWallSt

Fax: (212) 363-7171

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SOURCE SueWallSt.com