Align Technology (ALGN) Securities Class Action Lawsuit
Align Technology (ALGN) Securities Class Action Lawsuit Investigation Commences after Align Technology (ALGN) Shareholders Lose 30% in One Month
Align Technology stock has dropped from a high of over $38 per share in mid September, 2012 to $25 per share in mid October, 2012. This represents a loss in over 1 billion in market value in less than one month. Of course, ALGN insiders sold over 1.5 million shares before the sudden drop. Align Technology losses came at least in part due to disclosures that revenue and earnings forecasts were overstated and that important goodwill associated with a prior corporate acquisition was also overstated.
Align Technology Disclosures to Shareholders
Published reports indicate that Align Technology overstated reported income and earnings as Align Technology failed to timely write down goodwill associated with its acquisition of Cadent Holdings, Inc. According to reports, the pre-existing distribution relationship between Cadent and its European distributor was materially impaired, necessitating a goodwill write down. Align Technology failed to timely report this impairment.
Additionally, published reports claim that Align Technology overstated revenue forecasts for fiscal year 2012 and that Align Technology failed to timely disclose the overstated forecasts.
Align Technology (ALGN) Securities Class Action Lawsuit Investigation
Did Align Technology management knowingly misstate revenue forecasts? Did ALGN fail to properly disclose goodwill impairment relating to the Cadent acquisition? DId ALGN executives sell 1.5 million in ALGN shares at artificially inflated prices? These questions form the basis of our Align Technology (ALGN) securities class action lawsuit investigation. If you purchased ALGN securities, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this investigation, please contact us by competing the contact form or call Attorney George Pressly at 1 (800) 631-6234.