The Briscoe Law Firm has filed a federal class action lawsuit against Align Technology, the manufacturer and distributor of Invisalign clear orthodontic aligners. The lawsuit includes several key company officers and directors as defendants. The complaint alleges that the defendants have violated provisions of the Security and Exchange Act of 1934. Allegedly, the defendants issued false and/or misleading statements and/or failed to disclose that:
- Align Technology would offer higher discounts to promote Invisalign
- The promotions would materially impact revenue
- As a result, their positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Align Technologies publicly trades on the Nasdaq Exchange. On October 24, it disclosed a more than 6% decrease in its Invisalign Average Selling Price from $1,315 to $1,230 as part of its 2018 third quarter financial results. The company also reported that chief marketing officer Raphael Pascaud would reduce his responsibilities and transition to a part-time position. After these announcements, Align’s stock dropped from $290.83 to $217.94 by closing on October 29.
In a separate but related legal matter, the Pomerantz Law Firm also has announced that it is investigating class action investor claims against Align Technologies for possible securities fraud. Like the Briscoe Law Firm, Pomerantz noted Align’s third quarter financial results announcement, including the decline in the Invisalign average selling price from $1,315 to $1,230, Pascaud’s transition, and the decline in stock price.
Align Technology is a manufacturer of 3-D digital scanners and clear aligners for orthodontics headquartered in San Jose, California. Its aligners are manufactured in Juarez, Mexico, and its scanners are manufactured in Israel. Since the expiration of numbers of its key patents in 2017, the company has faced increasing competition.
Dr. Davis practices general dentistry in Santa Fe, NM. He assists as an expert witness in dental fraud and malpractice legal cases. He currently chairs the Santa Fe District Dental Society Peer-Review Committee and serves as a state dental association member to its house of delegates. He extensively writes and lectures on related matters. He may be reached at mwdavisdds@comcast.net or smilesofsantafe.com.
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