|By PR Newswire||
|December 7, 2012 09:15 PM EST||
NEW YORK, December 7, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Align Technology, Inc. ("Align" or the "Company") (NasdaqGS:ALGN).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Align had materially overstated the Company's income and earnings; (2) the Company had failed to write down goodwill associated with the April 2011 acquisition of Cadent Holdings, Inc. ("Cadent"); (3) the goodwill associated with the Cadent acquisition had been materially impaired as the Company's negotiations with the Straumann Group ("Straumann"), the Company's exclusive distributor in Europe, over a distribution arrangement were failing; and (4) the Company's sales and current sales trend could not support Align's optimistic third quarter fiscal year 2012 financial forecasts.
On October 17, 2012, the Company disclosed that as a result of the termination of its distribution agreement with Straumann, Align would need to review its goodwill and could sustain a large impairment charge, erasing a significant portion of the goodwill value of Cadent. On the same day, the Company issued a press release pre-announcing its third quarter fiscal 2012 financial results, which missed market revenue and earnings expectations. In addition, the Company reported that Cadent's sales and services revenues had declined nearly 16%, year-over-year. Finally, the Company issued weak revenue and earnings outlook for the fourth quarter of 2012, well short of prior expectations. On these disclosures, Align's stock price plummeted more than 20%, from a close of $35.41 per share on October 17, 2012 to a close of $28.18 per share on October 18, 2012.
Request more information now by clicking here: www.faruqilaw.com/ALGN. There is no cost or obligation to you.
If you purchased Align stock or options between April 23, 2012 and October 17, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/ALGN. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected] or [email protected] 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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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP