Investors who purchased shares of Align Technology, Inc. (NASDAQ:ALGN)
The investigation by a law firm concerns whether certain Align Technology officers and directors breached their fiduciary duties and caused damage to the company and its shareholders. More specifically, the investigation focuses on Align Technology’s October 17, 2012 announcement that it would take a substantial impairment charge relating to its March 29, 2011 acquisition of privately held Cadent Holdings, Inc. for approximately $190 million in cash.
Shares of Align Technology, Inc. declined from $38.14 per share on October 5, 2102 to $26.09 per share on October 26, 2012.
According to the investigation prior to the announcement on October 17, 2012 certain company insiders sold more than 1.5 million shares of Align Technology, Inc. stock to realize proceeds in excess of $52 million.
Align Technology, Inc. reported that its annual Total Revenue increased from $387.13 million in 2010 to $560.04 million in 2012 while its Net Income declined from $74.25 million tin 2010 to $58.69 million in 2012. Shares of Align Technology, Inc. (NASDAQ:
Those who purchased shares of Align Technology, Inc. (NASDAQ:ALGN)