Not sure... what you mean, "truncate"? Like, keeping the same dialogue box size while the text kinda "overflows:hidden", dissapearing over the top? I think this is standard for text (now i do never use text, i prefer spritefonts), with Vertical Alignement: Bottom. If the textbox keeps growing, I guess you could also state the box dimensions whenever you append a new line (everytime the text changes, set the width and height again.
Not sure if that was yr doubt tho...
Note: use spritefonts! They behave better on phones, and look better anywhere, imo.