Group 1 - Alignment Healthcare Inc. (NASDAQ:ALHC) experienced a significant decline of 11.97% on Tuesday, closing at $20.96, as investors reacted negatively to lower-than-expected preliminary payment proposals for the Medicare Advantage program [1][3] - The Centers for Medicare and Medicaid Services (CMS) projected a net average payment increase of only 0.09%, which is substantially lower than the anticipated growth of 4 to 6 percent by analysts [2] - The CMS also proposed tighter risk-adjustment rules, including the exclusion of diagnoses made solely via audio calls and some chat reviews starting in 2027 [2] Group 2 - Alignment Healthcare's stock drop was in line with other major players in the industry, such as UnitedHealth Group, CVS Health, Centene Corp., and Oscar Health, raising concerns about their performance due to exposure to the government-sponsored Medicare program [3] - Investors are expected to monitor Alignment Healthcare's short-term outlook closely, particularly following updates to the Medicare program, with the company scheduled to release its financial and operating highlights in the last week of February 2026 [4]

Core Viewpoint - UnitedHealth Group, Inc. is facing increased legal challenges as shareholders file multiple lawsuits related to a federal investigation into the company's Medicare billing practices, which were highlighted in a Wall Street Journal report [1][3]. Summary by Sections Legal Actions - Steve Silverman, a long-time shareholder, has filed a derivative lawsuit in federal court, claiming that UnitedHealth's leadership has harmed the company through questionable billing practices [2]. - The lawsuit accuses CEO Stephen Hemsley, former CEO Andrew Witty, and board members of engaging in practices that led to inflated reimbursements, significantly impacting the company's financial results and stock price [3][4]. - Other shareholders have also filed lawsuits, with one alleging that Hemsley and Witty profited from stock sales before the DOJ investigation became public [5][6]. Financial Impact - The lawsuits focus on the profitability of UnitedHealth's Medicare business, which has drawn negative attention and affected its stock price [6]. - Allegations include that the company repurchased $7.3 billion in stock at inflated prices while executives profited from share sales during the undisclosed DOJ investigation [9]. Company Challenges - UnitedHealth is currently navigating a series of challenges, including ongoing lawsuits, a DOJ investigation, regulatory changes, and leadership changes following the resignation of CEO Andrew Witty [7][10]. - The company's stock has seen a significant decline, falling over 40% year-to-date, with shares trading at $302.10 at the time of the report [11].