According to the Complaint, SmileDirectClub purports to be the “first direct-to-consumer medtech platform for transforming smiles” that manufactures, markets, and sells clear aligner treatments.
The Complaint alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that administrative personnel, rather than licensed doctors, provided treatment to the Company’s customers and monitored their progress; (2) that, as a result, the Company’s practices did not qualify as teledentistry under applicable standards; (3) that, as a result, the Company was subject to regulatory scrutiny for the unlicensed practice of dentistry; (4) that the efficacy of the Company’s treatment was overstated; (5) that the Company had concealed these deceptive marketing practices prior to the IPO; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On November 18, 2019, the Court issued an Order transferring this case to the Middle District of Tennessee under Docket CV-19-01057. On January 27, 2020, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel.