SAN DIEGO and SAN JOSE, Calif., Dec. 4, 2012 /PRNewswire/ -- Shareholder rights firm Robbins Umeda LLP announces that a complaint has been filed in the U.S. District Court for the Northern District of California on behalf of purchasers of Align Technology, Inc. (NASDAQ: ALGN) ("Align" or the "Company"). The complaint alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors between April 23, 2012 and October 17, 2012 (the "Class Period").
Align designs, manufactures, and markets digital treatment solutions for dental professionals, including the Invisalign system for orthodontic treatment. The complaint alleges that, throughout the Class Period, the Company issued a series of materially false and misleading statements to investors overstating its reported income and earnings. Specifically, the complaint alleges that the defendants' statements regarding the Company were materially false and misleading because Align failed to timely write down goodwill associated with its April 2011 acquisition of Cadent Holdings, Inc. ("Cadent"). Further, according to the complaint, the company failed to disclose that negotiations between Align and its exclusive European distributor, the Straumann Group ("Straumann"), had been failing, resulting in a material impairment of the goodwill associated with the Cadent Acquisition. Additionally, the investors were not made aware that Align's third quarter and fiscal 2012 financial forecasts could not be supported by current sales trends. Moreover, as a result of these misrepresentations and/or omissions, Align's stock traded at artificially inflated prices during the class period, allowing Company insiders to sell more than 1.5 million shares of the Company's stock for more than $52 million.
Then, on October 17, 2012, Align announced the termination of its distribution agreement with Straumann, and pre-announced that the Company would miss analysts' revenue and earnings expectations. On this news, Align's share price fell 20%, from $35.41 per share on October 17, 2012 to close at $28.18 on October 18, 2012.
If you purchased or otherwise acquired Align stock during the Class Period and wish to serve as lead plaintiff, you must act no later than January 28, 2013. To discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/align-technology-inc/
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SOURCE Robbins Umeda LLP