ALIT Investor Alert: Alight, Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Allegedly Inflating Growth and Dividend Commitments: Levi & Korsinsky

Promise vs. Reality: The Alight Performance Gap

NEW YORK, May 04, 2026 (GLOBE NEWSWIRE) -- On March 20, 2025, Alight, Inc. (NYSE: ALIT) told investors it had "a clear line of sight to mid-single-digit revenue growth," "a defined path to 28% margin in 2026," and "$1 billion of free cash flow accumulation" by 2027. Eleven months later, new management cancelled the dividend, disclosed that the Company failed to "meet our internal financial targets," and revealed that "new bookings and renewals did not meet our expectations." ALIT shares lost approximately $6.85 per share over the Class Period, a decline of nearly 90%.

Find out if you qualify to recover your investment losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

A securities class action has been filed on behalf of investors who purchased ALIT stock between November 12, 2024 and February 18, 2026. The lead plaintiff deadline is May 15, 2026.

The Promise

Across earnings calls and a dedicated Analyst/Investor Day, the Company laid out specific financial commitments to shareholders:

• Fiscal 2025 revenue of $2,318 million to $2,388 million
• Adjusted EBITDA of $620 million to $645 million with 150 to 180 basis points of margin expansion
• Free cash flow of $250 million to $285 million, representing 13% to 29% growth
• Annual ARR bookings of $130 million to $145 million
• A quarterly dividend of $0.04 per share, described as a "commitment" and "expectation for a consistent approach"
• Cumulative free cash flow of approximately $1 billion between 2025 and 2027

The lawsuit contends these projections were made while the Company lacked the commercial execution capability and internal performance to support them.

The Reality

The gap between what was promised and what materialized widened across two corrective disclosures:

• August 5, 2025: Revenue guidance was cut. ARR bookings slowed. Project revenue declined worse than projected. The Company pointed to macroeconomic uncertainty it had previously minimized and acknowledged insufficient commercial execution. ALIT fell 18.32% in a single session.
• February 19, 2026: New management disclosed that the Company missed internal financial targets. Bookings and renewals fell short of expectations. The dividend was cancelled. Compensation expenses had to increase materially to "promote service quality" and fix sales execution failures the prior leadership team had not disclosed. ALIT fell an additional 38.17%.

As alleged in the action, the Individual Defendants' repeated assurances of execution readiness, margin independence from revenue, and dividend sustainability lacked a reasonable basis at the time they were made.

The Numbers: Promised vs. Actual

• Dividend commitment: Initiated November 2024 as a signal of "confidence in free cash flow" and "consistency." Cancelled February 2026, with new management citing "more efficient capital allocation activities."
• Commercial team readiness: Described as having "the pieces we need" and a pipeline "up over 60%." New management later disclosed that bookings and renewals "did not meet expectations" and called for "a change in the execution of the company."
• Margin expansion independent of revenue: Promised as achievable through cloud savings and productivity. An unexpected increase in compensation and incentive expenses undermined the projection.

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. This case presents a stark contrast between what Alight committed to publicly and the operational reality that ultimately emerged." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering your Alight losses or call (212) 363-7500.

LEAD PLAINTIFF DEADLINE: May 15, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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