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Align Technology, Inc. ALGN Securities Lawsuit


Company: Align Technology, Inc.
Ticker Symbol: ALGN
Class Period: Apr-23-12 to Oct-17-12
Date Filed: Nov-28-12
Lead Plaintiff Deadline: Jan-27-13
Court: Northern District of California
Allegations:
New York, NY: A securities class action lawsuit has been commenced on behalf of an institutional investor 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 complaint 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.

According to the complaint, defendants' statements during the Class Period concerning Align's current financial condition and financial results for fiscal 2012 were each false and misleading, because defendants knew or deliberately disregarded and failed to disclose the following facts: (a) the Company's reported income and earnings were materially overstated, as the Company failed to timely write down goodwill associated with the Cadent acquisition; (b) negotiations with Straumann concerning its distribution relationship with Align had failed or been failing and therefore the goodwill associated with the acquisition of Cadent had already been materially impaired; and (c) the Company's sales and current sales trends could not support the Company's third quarter and fiscal 2012 financial forecasts.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Align Technology, Inc. ALGN Securities Fraud Legal Help

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Published on Nov-29-12

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