Align Technology, Inc.
Lead Plaintiff Deadline: 05/01/2020
SUMMARY OF CASE:
A securities class action has been filed against Align Technology, Inc. (ALGN) behalf of purchasers of Align common stock between April 24, 2019 through July 24, 2019. This case has been filed in the USDC – S.D.N.Y.
Align is a medical device company that designs, manufactures, and markets devices to treat misaligned teeth. Its principal products are its line of Invisalign® (“Invisalign”) clear dental aligners.
The Complaint alleges that throughout the Class Period, Defendants made numerous materially misleading statements emphasizing the growth and performance of the Company’s operations in China, the Company’s most valuable market after the United States. These statements included describing the “huge market opportunity” and “tremendous growth . . . in China, in particular,” and characterizing the Company’s increasing presence in China as “a big hit with our Chinese customers.” These and other statements detailed herein were materially false and misleading because they materially overstated the Company’s performance in China and omitted to disclose material declines in Chinese demand for the Company’s products and the deteriorating sentiment of Chinese consumers towards the Company’s products.
On July 24, 2019, after the market closed, Align issued a press release announcing its financial results for the second quarter of 2019, which reported significantly declining sales volumes for its Invisalign products and drastically reduced growth projections for the third quarter and full year of 2019. Defendant Joseph M. Hogan, the Company’s Chief Executive Officer (“CEO”), acknowledged that these problems were “‘primarily due to softness in China related to a tougher consumer environment’” – a stark contrast from Defendants’ Class Period representations about the Company’s Chinese operations.
In response, the price of Align stock dropped from $275.16 per share to $200.90 per share, a loss of nearly $75 per share, representing a one-day decline in market capitalization of over $5.4 billion.