Align Technology, Inc.

135
DAILY

currently on a sell off due to the bad news
possible 38.2 fib support

will wait for the price to be stable

RSI 70 resistance
RSI 30 support


CATALYST - finance.yahoo.com/news/arbitration-ruling-finds-align-technology-182000621.html?.tsrc=rss


Requires Align Technology Inc. To Close Down All of Its 12 Invisalign Stores and Prohibits Any New Store Openings

NASHVILLE, Tenn., March 6, 2019 /PRNewswire/ -- SmileDirectClub, the market leader and pioneer of doctor-directed, remote invisible aligner therapy, today announced the decision in the arbitration brought by SmileDirectClub against Align Technology Inc. (ALGN) for violations of restrictive covenants among other claims.

SmileDirectClub (PRNewsfoto/SmileDirectClub)
SmileDirectClub (PRNewsfoto/SmileDirectClub)
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After reviewing an overwhelming amount of evidence, Align was found to have breached the non-compete and other restrictive provisions applicable to the members of SmileDirectClub, including that Align misused SmileDirectClub's confidential information and violated fiduciary duties to SmileDirectClub. The ruling requires Align to close down all of its 12 Invisalign stores by April 3, 2019 and enjoins Align from opening any new stores or providing certain services in connection with the marketing and sale of clear aligners. Moreover, the expiration date of the non-compete provision has been extended to August 18, 2022. Align is also permanently enjoined from using SmileDirectClub's confidential information.

As part of the ruling, Align has been ordered to return its ownership stake back to SmileDirectClub for the price of its stated capital account balance as of October 31, 2017 – a price which is significantly below the fair market value of its investment given the valuation of $3.2 billion that SmileDirectClub obtained last summer. With this order Align will no longer be an investor in SmileDirectClub. This decision has no impact on Align's existing supply agreement with SmileDirectClub through 2019.

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