NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Align Technology, Inc. (“Align” or the “Company”) (NASDAQ:ALGN) of the May 1, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Align stock or options between April 24, 2019 and July 24, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/ALGN. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Align securities between April 24, 2019 and July 24, 2019 (the “Class Period”). The case, City of Roseville Employees' Retirement System v. Align Technology, Inc. No. 20-cv-01822 was filed on March 2, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making 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.
Specifically, 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, Align’s stock fell from a closing price of $275.16 per share on July 24, 2019 to $200.90 on July 25, 2019—a $74.26 or 26.99% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Align’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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