Aug. 20, 2009 (Business Wire) -- Law Offices of Howard G. Smith, representing investors of Align Technology, Inc. (“Align” or the “Company”) (Nasdaq:ALGN), has filed a class action lawsuit in United States District Court on behalf of a class (the “Class”) consisting of all persons or entities who purchased the common stock of Align between January 30, 2007 and October 24, 2007, inclusive (the “Class Period”). The class action lawsuit was filed in the United States District Court for the Northern District of California.
The Complaint charges the Company and its chief executive officer with violations of federal securities laws. Align Technology, Inc. designs, manufactures and markets the Invisalign system for treating the misalignment of teeth. The Complaint alleges that throughout the Class Period the defendants knew or recklessly disregarded and failed to disclose or indicate that the Company had shifted the focus of its sales force to clearing backlog, causing a significant decrease in the number of new case starts. Consequently, defendants’ misleading statements and omission of materially adverse information rendered their Class Period statements concerning the Company’s business, operations and financial prospects materially false and misleading at all relevant times.
On October 24, 2007, Align held a conference call with analysts to discuss the Company’s third quarter 2007 financial results announced that same day. During the conference call, the Company shocked the market when it acknowledged, among other things, that in an effort to clear prior backlog “we did not focus enough effort on filling the pipeline for new case starts,” and the Company had to refocus its field and channel marketing teams to generate new case growth.
As a result of this news, shares of Align declined more than 33%, or $9.63 per share, to close the next day, October 25, 2007, at $19.07 per share, on unusually heavy trading volume.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Align common stock between January 30, 2007 and October 24, 2007, you have certain rights, and have until October 13, 2009, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at 215-638-4847, Toll-Free at 888-638-4847, by email to howardsmith@howardsmithlaw.com or visit our website at http://www.howardsmithlaw.com.
