Align Investors Say They Weren’t Told Discounts Cost Money

The medical device company behind Invisalign clear braces misled investors about reduced profit margins tied to increased discounts on braces, a Dec. 12 complaint said.

Align Technology Inc. should have told investors when it expanded its discount program, which substantially reduced average sale prices, according to a would-be class complaint filed in the U.S. District Court for the Northern District of California.

Align draws about 89 percent of its worldwide net revenues from its various clear braces products, the complaint said. The expanded customer loyalty program gave larger discounts to practitioners who convinced more patients to choose the company’s products, ...