Shareholder Investigation of Align Technology, Inc.
Align Technology, Inc. (ALGN) Accused of Failing to Disclose Negative Impact of its Invisalign Promotions
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between July 25, 2018 and October 24, 2018, Align’s President and CEO Joe Hogan stated that the company’s 37.5% year-over-year revenue growth was due to momentum from Invisalign doctors and increased adoption of Invisalign treatment for teenage patients. Hogan further touted that Invisalign’s customer base was over 50,000 for the first time and included more than 5,000 Invisalign-trained doctors. However, Align’s higher discounts to promote Invisalign were negatively impacting the company’s revenue. On October 24, 2018, Align reported that its Invisalign average selling price had declined from $1,315 to $1,230 and that its Chief Marketing Officer would reduce his responsibilities and transition to a part-time position. On this news, Align’s stock fell over 20% on October 25, 2018, and then declined even further to close at $217.94 per share on October 29, 2018.
Shareholder Investigation of Align Technology, Inc. - Robbins Arroyo LLP
