Levi & Korsinsky Announces NVDA Lawsuit; NVDA Class Action

Class Action Reports

Levi & Korsinsky Announces ALGN Class Action; ALGN Lawsuit

Levi & Korsinsky, LLP

December 12, 2018

Lu v. Align Technology, Inc., et al 5:18-cv-06720-LHK–On November 5, 2018, investors sued Align Technology, Inc., (“Align” or the “Company”) in United States District Court, Northern District of California. Plaintiffs in the ALGN class action allege that they acquired Align stock at artificially inflated prices between July 25, 2018 and October 24, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the ALGN Lawsuit, please contact us today!

Summary of the Allegations

Company Background

According to its website, Align (NYSE: ALGN) is a global medical device company that provides products and services which, “help dental professionals achieve the clinical results they expect and deliver effective, cutting-edge dental options to their patients.”

The Company says it introduced its Invisalign teeth straightening system in 1999, and that it made more than 1 million of the unique clear aligners within two years. Today, the Company also claims, it has helped treat more than 5 million patients with the Invisalign system – which is now available to adult and teenage patients in more than 90 countries globally.

Summary of Facts

Align and three of its senior officers (the “Individual Defendants”) now stand accused of deceiving investors by lying and/or withholding critical information about the Company’s business practices and prospects during the Class Period.

Specifically, they are accused of omitting truthful information about discounts used to promote Invisalign from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused the price of Align stock to trade at artificially inflated prices during the time in question.

The truth came out when the Company announced its third quarter 2018 financial results on October 24, 2018. Align then revealed that its Invisalign Average Selling Price dropped from $1,315 to $1,230.

On the same day, the Company announced that its Chief Marketing Officer (an Individual Defendant) would “reduce his responsibilities and transition to a part-time position.”

A closer look…

As alleged in the November 5, complaint, Align and/or the Individual Defendants repeatedly made false and misleading public statements during the Class Period.

For instance, in a press release announcing the Company’s financial results for the second quarter of 2018, which was issued at the beginning of the Class Period, one of the Individual Defendants said in pertinent part: “Year-over-year revenue growth of 37.5% was driven by continued momentum from Invisalign doctors and increased adoption of Invisalign treatment for teenage patients, which was 42.1%.”

In the same press release, the same Individual Defendant also stated in pertinent part: “Q2 Invisalign volume growth of 30.5% year-over-year reflects increased utilization and expansion of our customer base, which was over 50,000 for the first time and included more than 5,000 new Invisalign-trained doctors.”

Then, on August 2, 2018, the Company filed a quarterly report with the SEC in which it affirmed the financial results announced in the press release.

What the Company did not disclose, however, was that it “would offer higher discounts to promote Invisalign,” and that “the promotions would materially impact revenue.”

Impact of the Alleged Fraud on Align’s Stock Price and Market Capitalization

Closing stock price prior to disclosures:

 

$290.83
Closing stock price the trading day after disclosures:

 

$232.07
One day stock price decrease (percentage) as a result of disclosures:

 

20.20%

The following chart illustrates the stock price during the class period:

 ALGN Lawsuit ALGN Class Action

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is January 4, 2019. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Align common stock using court approved loss calculation methods.

Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

ALGN Lawsuit ALGN Class Action

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.