Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/align/)
today announced that a class action 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").
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff's counsel, Darren
Robbins of Robbins Geller at 800-449-4900 or 619-231-1058, or via
e-mail at firstname.lastname@example.org. If you
are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/align/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of teir choice, or may choose to do nothing
and remain an absent class member.
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.
Plaintiff seeks to recover damages on behalf of all purchasers of Align
common stock during the Class Period (the "Class"). The plaintiff is
represented by Robbins Geller, which has expertise in prosecuting
investor class actions and extensive experience in actions involving
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in nine offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries in history and has been ranked number one in the number of
shareholder class action recoveries in MSCI's Top SCAS 50 every
year since 2003. According to Cornerstone Research, the firm's
recoveries have averaged 35% above the median for all firms over the
past seven years (2005-2011). Please visit http://www.rgrdlaw.com
for more information.
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