Align Technology, Inc.
- Company Name
- Align Technology, Inc.
- Stock Symbol
- Class Period
- July 25, 2018 to October 24, 2018
- Motion Deadline
- January 4, 2019
- Northern District of California
The complaint charges Align and certain of its officers with violations of the Securities Exchange Act of 1934. Align is a medical device company that designs, manufactures and markets products for the treatment of malocclusion or the misalignment of teeth. Invisalign is the brand name of the Company’s clear aligners.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose that the Company would offer higher discounts to promote Invisalign and that the promotions would materially impact the Company’s revenue. As a result of this information being withheld from investors, Align securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $390 per share.
Then on October 24, 2018, Align issued a press release announcing its third quarter 2018 financial results, including a more than 6% decrease in its Invisalign Average Selling Price, from $1,315 to $1,230. On the same day, the Company also announced that its Chief Marketing Officer would “reduce his responsibilities and transition to a part-time position.” On this news, Align’s share price shares fell $58.76 per share, or 20%, to close at $232.07 per share on October 25, 2018.