Align Technology, Inc. Employee ERISA Investigation

If you a former or current employee or are a member of any of Align Technology, Inc’s investment plans or profit sharing retirement plans and purchased or held Align Technology, Inc. (Public, NASDAQ:ALGN) shares or have information relating to this investigation, you should contact the Shareholders Foundation.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Align Technology
Affected Securities: 
NASDAQ: ALGN

An investigation on behalf of former and current employees of Align Technology, Inc. (Public, NASDAQ:ALGN) concerning potential Employee Retirement Income Security Act (“ERISA”) Breach of Fiduciary Duty was announced.

Align Technology, Inc has been accused of securities fraud and according to a an investigation by a law firm under ERISA employees (former and current) of Align Technology, Inc may be eligible to file a ERISA complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them. The Fiduciary duty refers to a company’s responsibility to the people who invest in it and if an employer puts the company’s interest ahead of the investors’, it has broken its fiduciary duty, so the investigation. Align Technology, Inc. faces a securities class action lawsuit over alleged violations of Federal Securities Laws on behalf of purchasers of common stock of Align Technology, Inc. (Nasdaq:ALGN) between January 30, 2007 and October 24, 2007. An investor in Align Technology shares has filed a proposed securities class action lawsuit in the United States District Court for the Northern District of California over alleged violations of Federal Securities Laws by Align Technology and other.

According to the complaint the plaintiff alleges that Align Technology and its chief executive officer violated the federal securities laws by knowing or recklessly disregarding between January 30, 2007 and October 24, 2007 that the defendant’s public statements concerning Align Technology’s business, operations and prospects were materially false and misleading. Then on October 24, 2007, Align Technology held a conference call with analysts to discuss its third quarter 2007 financial results announced that same day. During the conference call, Align Technology announced that certain of its executive officers acknowledged that, among other things, in an effort to clear prior backlog “we did not focus enough effort on filling the pipeline for new case starts,” and that the Company had to refocus its field and channel marketing teams to generate new case growth.

In response to this news shares of Align Technology, Inc. (Nasdaq:ALGN) declined the next day more than 33%, or $9.63 per share, to close on October 25, 2007, at $19.07 per share, on unusually heavy volume of more than 12 million shares traded. According to previous investigations by law firms it has come also to light that in the months prior to Align’s October 24, 2007 announcement, certain company insiders sold hundreds of thousands of shares of their personally held Align common stock and realized gross proceeds in excess of $20 million.

Align Technology, Inc., located in Santa Clara, California, designs, manufactures, and markets the Invisalign system, a method for treating malocclusion, or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Align Technology reported in 2007 Total Revenue of $284.33million and in 2008 Total Revenue of $303.98million with a Net Income of $79.99million. Shares of Align Technology (NASDAQ:ALGN) traded recently at $10.40 per share, down form a 52weekHigh of $13.74 per share and $28.46 per share in 2007.