In an opinion on Thursday, the Ninth Circuit reviewed the district court’s decision finding that it did not err in dismissing the original complaint as non-actionable in a lawsuit filed by Macomb County Employees’ Retirement System and the City of Roseville Employees’ Retirement System against Align Technology Inc. for misrepresenting its prospects in China.
Align Technology Inc. is a medical device manufacturer known for its “Invisalign” braces. According to the opinion, at the start of 2019, Invisalign’s Chinese growth rate slightly decreased and fell between 20 and 30 percent.
A year later, Macomb County Employees’ Retirement System filed a class-action complaint against Align Technology Inc. on behalf of itself and others who acquired Align’s common stock between April and July of 2019. The class-action complaint accused Align of violating the Securities Exchange Act by misrepresenting the company’s prospects in China.
Originally, the court dismissed the complaint with leave to amend. However, instead of amending the complaint, Macomb requested final judgment; subsequently, the district court dismissed the class action.
The appeals court affirms the lower court’s decision to dismiss the lawsuit.