SAN FRANCISCO--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro, LLP, a national investor-rights law firm, today announced it is investigating Align Technology, Inc. (NASDAQ: ALGN) (“Align”). The firm also advised investors of the Jan. 28, 2013, deadline to move for lead plaintiff in a securities fraud class action filed on their behalf.
If you purchased shares of Align common stock between April 23, 2012 and Oct. 17, 2012, inclusive (the “Class Period”), and suffered significant financial losses, you are encouraged to contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000 or emailing ALGN@hbsslaw.com.
The deadline to move for lead plaintiff in the filed lawsuit is Jan. 28, 2013. The deadline is only for those who wish to move for lead plaintiff in the proposed class action. The Court appoints as lead plaintiff the individual or group with the largest losses and who otherwise meets the requirements of an appropriate class representative.
The lawsuit, filed on Nov. 28, 2012, in the U.S. District Court for the Northern District of California, alleges that Align made false or misleading statements to investors in violation of the securities laws. Specifically, it claims that Align failed to timely record write downs associated with its acquisition of Cadent Holdings, Inc., causing it to overstate income and earnings, and failed to inform investors that negotiations with its exclusive European distributor, the Straumann Group (“Straumann”), were either failing or had already failed. At the same time, the complaint argues, insiders at Align sold hundreds of thousands of shares of company stock for tens of millions of dollars.
On Oct. 17, 2012, Align announced an end to its agreement with Straumann. The same day, it pre-announced third quarter fiscal 2012 results that were below analyst expectations. On the news, Align stock fell more than 20 percent.
Hagens Berman is investigating Align for potential violations of the securities laws, which require that public companies provide timely and accurate information to investors regarding issues that will have a material impact on the company.
“We need to learn what Align’s executives knew and when they knew it,” said Mr. Kathrein, who is leading the firm’s investigation. “Withholding information that, once released, will have a dramatic impact on investor sentiment is bad enough. But we think the insider selling, which made certain executives millions, points to a disturbing motive for withholding key information.”
The firm also reminds whistleblowers with inside information that rewards may be available to individuals who report information leading to a successful enforcement action by the Securities and Exchange Commission. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
More information about this investigation is available at http://hb-securities.com/investigations/ALGN.
Hagens Berman Sobol Shapiro, LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm’s securities law blog is at http://www.meaningfuldisclosure.com.