San Francisco County Superior Court Grants Temporary Restraining Orders in Align Technology and OrthoClear Complaints
Santa Clara, California (ots/PRNewswire)
Align Technology, Inc.
(Nasdaq: ALGN), the inventor of Invisalign(R), a proprietary method
of straightening teeth without wires and brackets, today announced
that the San Francisco County Superior Court has granted a Temporary
Restraining Order ("TRO") against defendants OrthoClear, Inc.,
OrthoClear Holdings, Inc., and individual defendants and former Align
employees Muhammad Ziaullah Chishti, Bao Tran, Peter Riepenhausen,
Joe Breeland, Jeff Tunnell, Christopher Kawaja, and Charles Wen,
pursuant to a multi-claim lawsuit filed by Align earlier this month.On February 18, 2005, the Court granted Align's request for and issued a TRO prohibiting OrthoClear and the individual defendants from "engaging, assisting, or participating, directly or indirectly, in soliciting, inducing to leave, recruiting, or encouraging any current Align employee or consultant to terminate or alter his or her employment or business relationship with Align" or attempting to do the same.
The Court also granted Align's request for and issued a TRO prohibiting OrthoClear and the individual defendants from "disclosing, using, lecturing upon or publishing any Proprietary Information belonging to Align without the express prior written permission of Align." For the purposes of the TRO, the Court defined "Proprietary Information" as the materials covered by Paragraphs 1 or 1.2 of the Employee Proprietary Information and Inventions Agreements with Align signed by each of the individual defendants. For example, the materials covered by Paragraph 1.2 include, among other things, Align's:
(a) trade secrets, inventions, mask works, ideas, processes, formulas,
source and object codes, data, programs, other works of authorship,
know-how, improvements, discoveries, developments, designs and
techniques ... (b) information regarding plans for research, development,
new products, marketing and selling, business plans, budgets and
unpublished financial statements, licenses, prices and costs, suppliers
and customers; and (c) information regarding the skills and compensation
of other employees of the Company.In response to a cross-application for TRO filed by certain defendants, the Court enjoined Mr. Chishti and the Align parties from disparaging each other in such a manner as to violate their mutual non-disparagement clause. The Court also enjoined Align and specific officers from advising any Align employee or consultant that he or she will be subject to criminal charges or a civil lawsuit if that person elects to change his or her employment status with Align, unless Align has good cause to believe criminal conduct has been or will be committed or that a civil cause of action will lie against the employee or consultant. The Court also required Align to refrain from taking any actions inconsistent with Federal or State securities laws relating to the issuance or redemption of Align stock.
On February 2, 2005, Align filed a multi-claim lawsuit in San Francisco County Superior Court alleging tort, contract, statutory and common law causes of action arising from OrthoClear and the individual defendants' plan to unlawfully utilize Align's intellectual property, confidential information and employees. The lawsuit also alleges that OrthoClear, Mr. Chishti and other defendants are in breach of contractual obligations, statutory law and common law for attempting to intentionally interfere with and disrupt Align's ongoing business operations and improperly gain access to Align's customer relationships and trade secrets. On February 15, 2005, OrthoClear, Inc. filed a mutli-claim lawsuit against Align Technology and certain officers of the Company, alleging conspiracy, multiple accounts of breach of contract, libel, slander, unjust enrichment, intentional interferences with prospective economic advantage, and unfair competition.
More information and a copy of the TRO are available by selecting "Litigation Information" on Align's website at http://www.aligntech.com/generalapp/us/en/corporate/investor_frameset.jsp .
About Align Technology, Inc.
Align Technology designs, manufactures and markets Invisalign, a proprietary method for treating malocclusion, or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Because it does not rely on the use of metal or ceramic brackets and wires, Invisalign significantly reduces the aesthetic and other limitations associated with braces. Invisalign is appropriate for treating adults and older teens. Align Technology was founded in March 1997 and received FDA clearance to market Invisalign in 1998.
To learn more about Invisalign or to find a certified Invisalign doctor in your area, please visit www.invisalign.com or call +1-800-INVISIBLE.
Investor Relations Contact Press Contact
Barbara Domingo Shannon Mangum Henderson
Align Technology, Inc. Ethos Communication, Inc.
+1-408-470-1000 +1-678-417-1767
investorinfo@aligntech.com shannon@ethoscommunication.comWeb site: http://www.invisalign.com
Contact:
investors, Barbara Domingo of Align Technology, Inc.,
+1-408-470-1000, or investorinfo@aligntech.com; or media, Shannon
Mangum Henderson of Ethos Communication, Inc., +1-678-417-1767, or
shannon@ethoscommunication.com, for Align Technology, Inc.