New Federal Securities Cases
A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Align Technology, Inc. (“Align”) (NASDAQ:ALGN) common stock during the period between April 23, 2012 and October 17, 2012 (the “Class Period”).
The complaint charges Align and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Align designs, manufactures and markets Invisalign, a proprietary method for treating the misalignment of teeth.
The lawsuit alleges that during the Class Period, defendants issued materially false and misleading statements regarding Align’s current financial condition and quarterly and year-end revenue and earnings outlook for fiscal 2012. As a result of these misrepresentations and/or omissions, Align’s stock traded at artificially inflated prices during the Class Period, reaching a high of $39.17 per share on September 13, 2012, and allowing Company insiders to sell more than 1.5 million shares of Align stock at artificially inflated prices for illegal insider trading proceeds of more than $52 million.
Then, on October 17, 2012, the Company disclosed that as a result of the termination of its distribution agreement with the Straumann Group (“Straumann”), the Company’s exclusive distributor in Europe, it would review its goodwill and possibly take a substantial impairment charge, which would erase a significant amount of the goodwill value of Cadent Holdings, Inc. (“Cadent”), a leading provider of 3D scanning solutions for orthodontics and dentistry, which Align had acquired in April 2011. On the same day, the Company issued a press release pre-announcing its third quarter fiscal 2012 financial results, which missed Wall Street analysts’ revenue and earnings expectations. In addition, the Company reported that Cadent scanner and CAD/CAM sales and services revenues had declined nearly 16% year-over-year. Finally, the Company issued a weak revenue and earnings outlook for the fourth quarter of 2012, well short of prior expectations. On these disclosures, Align’s stock price plummeted more than 20%, from a close of $35.41 per share on October 17, 2012 to a close of $28.18 per share on October 18, 2012.
If you acquired Align Technology securities during the Class Period, you may, no later than January 28, 2013, request that the Court appoint you lead plaintiff of the class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement.
If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact us.
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