Align Technology, Inc. announced on October 1, 2024, that the U.S. District Court for the Northern District of California has granted preliminary approval of a settlement. This settlement aims to resolve shareholder derivative litigation that has been pending since 2019, providing a path towards closure for these legal proceedings.
Under the terms of the settlement, the plaintiffs will dismiss their lawsuits and release their claims. Align and the defendants deny any wrongdoing and will not make any monetary payments, with a potential award of $575,000 in attorney’s fees to plaintiffs’ counsel being covered by insurance.
As part of the settlement consideration, Align has agreed to adopt and maintain several corporate governance reforms for at least three years. These reforms include formalizing its management-level Disclosure Committee, increasing the number of directors on the Audit Committee to include a cybersecurity expert, and enhancing disclosures in its Form 10-K filings concerning human capital.
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