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Oklahoma City, OK (March 3, 2020) – On March 2, 2020, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Align Technology, Inc. (NASDAQ: ALGN). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is April 24, 2019 through July 24, 2019. More specifically, 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 were materially false and misleading because they exaggerated 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 consumers in China towards the Company’s products. As a result of defendants’ false statements and/or omissions, the price of Align common stock was artificially inflated to a high of more than $330 per share during the Class Period.
On July 24, 2019, after the market closed, the Company announced its financial results for the second quarter of 2019, revealing significantly declining sales volumes for its Invisalign products and drastically reducing its growth projections for the third quarter and full year of 2019. The Company’s Chief Executive Officer 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. On this news, the price of Align common stock declined nearly $75 per share, or more than 27%, from a closing price of $275.16 per share on July 24, 2019 to a closing price of $200.90 per share on July 25, 2019.
Plaintiff seeks to recover damages on behalf of all Align Technology, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Friday, May 1, 2020 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at email@example.com