ALGN · 10-Q · 2026Q2 · Full report

Litigation and Legal Risk

ALIGN TECHNOLOGY INC · 2026-08-05 · Importance 90 · Surprise 100 · No source text

Align recorded $69.3 million of legal settlements and contingencies during the six months ended June 30, 2026, compared with $4.2 million in the prior-year period. The six-month charge included $31.8 million related to legal settlements and a $37.5 million contingency loss related to UK value-added tax treatment of clear aligners. On July 7, 2026, the UK Upper Tribunal held that clear aligners are not dental prostheses and are subject to standard-rate VAT; Align intends to pursue available appeals. The ultimate resolution of the UK VAT matter remains uncertain.

Key facts

• For the six months ended June 30, 2026, legal settlements and contingencies recorded: $69.3 million, consisting of $31.8 million legal settlements and $37.5 million UK VAT contingency loss. source
• Legal settlements and contingencies recorded in the three months ended June 30, 2026: $38.7 million, consisting of $1.2 million legal settlements and $37.5 million UK VAT contingency loss. source

Impact estimates