Align Technology has entered into a memorandum of understanding (MOU) to resolve a class-action lawsuit concerning its proficiency requirements filed earlier this year in the U.S. District Court for the Northern District of California.
In May 2010, Christopher Leiszler, D.D.S., filed a complaint against Align alleging that the company implemented unfair requirements for the prescription of Invisalign through the company's annual proficiency requirements. Dr. Leiszler's Invisalign provider status was changed in January 2010 for failing to meet the company's proficiency requirements, which were modified in April 2010 to eliminate the annual case start requirement for Invisalign providers. Dr. Leiszler sued Align on behalf of himself and all others similarly situated, seeking a refund of the price paid to Align for Invisalign training.
Under the terms of the proposed settlement, class members can obtain reinstatement to prescribe Invisalign treatment under certain circumstances that will be described in the final settlement agreement. Certain class members will have the option to elect a cash remedy instead of the reinstatement benefit.
The proposed settlement remains subject to the execution of a formal settlement agreement and approval by the court. Align anticipates that a formal settlement agreement will be presented to the court within 30 to 45 days. If the court grants preliminary approval of the agreement, notice of the settlement terms will be provided to all class members.
Doctors who had their Invisalign accounts deactivated or suspended as a result of the proficiency requirements program are included in the settlement class, and will be notified of their options after a final settlement agreement is preliminarily approved by the court. Until then, doctors who have questions regarding the status of the court process can contact Align at [email protected].
In connection with the proposed settlement, and based upon Align's estimates, including attorneys fees and administrative costs, Align recorded a charge of $3.3 million in its third-quarter fiscal 2010 financials.
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