SmileDirectClub

SmileDirectClub produced 3D-printed clear aligners.{{cite news|url=https://www.bloomberg.com/news/articles/2018-10-10/orthodontics-startup-smiledirectclub-gets-3-2-billion-valuation|title=Orthodontics Startup SmileDirectClub Gets $3.2 Billion Valuation|newspaper=Bloomberg.com|date=October 10, 2018}} SmileDirectClub aligners were a competitor of traditional braces and clear alignment companies like Invisalign.{{cite web|url=https://www.forbes.com/sites/michelatindera/2018/05/02/bracing-for-competition-cheaper-challengers-enter-invisaligns-1-5-billion-market/|title=Bracing For Competition? Cheaper Challengers Enter Invisalign's $1.5 Billion Market|last=Tindera|first=Michela|website=Forbes|language=en|access-date=August 29, 2019}}

Communication with licensed orthodontic professionals and other SmileDirectClub staff took place virtually. Impression kits were sent to customers, after which teeth molds were reviewed by dentists or orthodontists who oversaw the treatment process. The company reportedly worked with 225 licensed professionals.{{cite web|url=https://www.chicagotribune.com/lifestyles/health/sc-hlth-orthodontists-straightening-startups-risks-0924-story.html|title=Teeth-straightening startups can be a cheap alternative to braces. But orthodontists have their doubts.|website=Chicago Tribune|date=September 24, 2018}}

While most business and dentistry was conducted online, the company had 300 retail locations across the United States, Canada, Australia and the United Kingdom.{{cite news|url=https://www.marketwatch.com/story/smiledirectclub-is-going-public-5-things-to-know-about-the-teeth-straightening-startup-2019-08-21|title=SmileDirectClub went public: 5 things to know about the teeth-straightening startup|author=Sarah Toy|publisher=MarketWatch|access-date=September 26, 2019}}{{cite news|url=https://medcitynews.com/2019/08/dental-company-smiledirectclub-files-to-go-public/|title=Dental company SmileDirectClub files to go public|author=Kevin Truong|publisher=MedCityNews|access-date=September 26, 2019}}

File:SmileDirectClub SmileShop.png

The company initially partnered with Align Technology as an exclusive third-party distributor for its aligners.{{cite web|url=http://investor.aligntech.com/news-releases/news-release-details/align-technology-supply-non-invisalign-clear-aligners|title=Align Technology to Supply Non-Invisalign Clear Aligners to SmileDirectClub in North America|website=Align Technology|language=en|access-date=May 23, 2019}} After a dispute over violation of a non-compete clause claiming Align "misused confidential SmileDirectClub information and violated its fiduciary duties," Align was ordered by an arbitrator to close its retail locations and return its ownership stake in SmileDirect.{{cite web|url=https://www.nashvillepost.com/business/health-care/article/21049955/arbitrator-gives-smiledirectclub-huge-win-over-align|title=Arbitrator gives SmileDirectClub huge win over Align|website=Nashville Post|language=en|access-date=May 23, 2019}} Align filed an additional arbitration to recoup amount the value of the ownership stake. In 2021, the arbitrator ordered SmileDirectClub to pay Align $43.4 million (plus $2.1 million in interest) for the ownership stake.{{cite web|last=Stinnett|first=Joel|date=March 16, 2021|title=Arbitrator rules SmileDirectClub must pay Align Technology more than $45 million|url=https://www.bizjournals.com/nashville/news/2021/03/16/smiledirectclub-must-pay-align-technology.html|access-date=June 11, 2021|website=bizjournals.com}}

In October 2018, SmileDirectClub raised $380 million in an investment round led by Clayton, Dubilier & Rice and Kleiner Perkins, for a $3.2 billion valuation according to Bloomberg.{{cite web |url=https://www.forbes.com/sites/michelatindera/2018/11/02/healthcare-startups-have-raised-more-this-year-than-in-2012-and-2013-combined/#74966c167ac7 |title=Healthcare Startups Have Raised More This Year Than in 2012 And 2013 Combined |last=Wolf |first=Janine |date=November 2, 2018 |work=Forbes |access-date=November 30, 2018}} SmileDirectClub was initially funded by Camelot Venture Group. NBA player Draymond Green was an early investor in the company, investing in 2015 after personally using its products.{{cite news|url=https://www.forbes.com/sites/michaellore/2019/09/12/draymond-green-set-for-another-big-pay-day-as-smile-direct-club-goes-public|title=Draymond Green Set For Another Big Pay Day As SmileDirectClub Goes Public|author=Michael LoRé|work=Forbes|access-date=September 26, 2019}}

The company expanded into Canada in November 2018,{{cite news |url=https://www.theglobeandmail.com/life/health-and-fitness/article-are-diy-orthodontics-safe/ |title=Are DIY orthodontics safe? |last=Taylor |first=Paul |date=November 12, 2018 |website=theglobeandmail.com |publisher=The Globe and Mail |access-date=November 30, 2018}} and expanded into the UK and Australia in 2019.{{cite news|url=https://www.afr.com/companies/healthcare-and-fitness/us-giant-aims-to-take-a-bite-out-of-high-orthodontic-bills-20190401-p519qk|title=US giant aims to take a bite out of high orthodontic bills|author=Simon Evans|publisher=Financial Review|access-date=September 26, 2019}}

During the 61st Annual Grammy Awards, SmileDirectClub announced a collaboration with singer Shawn Mendes on a campaign to show "that confidence is gained with an amazing smile."{{cite web|url=https://variety.com/2019/music/news/shawn-mendes-smile-direct-club-partnership-1203130396/|title=Shawn Mendes to Launch SmileDirectClub Partnership With TV Spot During Grammys|publisher=Variety|author=Staff|date=February 6, 2019|access-date=February 28, 2019}}

In April 2019, CVS announced that the company would add SmileDirectClub locations to hundreds of CVS stores.{{cite news|url=https://www.latimes.com/business/la-fi-cvs-smiledirectclub-straighten-teeth-20190425-story.html|title=CVS moves into dental care with teeth-straightening service SmileDirectClub|newspaper=LA Times|access-date=September 26, 2019}} In May 2019, HP and SmileDirectClub announced a partnership to produce over 20 million 3D-printed molds over the following year.{{cite news|url=https://3dprintingindustry.com/news/hp-and-smiledirectclub-to-3d-print-20-million-3d-printed-clear-aligner-dental-molds-per-year-155862/|title=HP And SmileDirectClub To 3D Print 20 Million 3D Printed Clear Aligner Dental Molds Per Year|author=Tia Vialva|publisher=3D Printing Industry|access-date=September 26, 2019}}File:SmileDirectClub Rings the Nasdaq Bell 1.jpg]]In August 2019, the company filed S-1 paperwork to go public.

{{cite web |url=https://techcrunch.com/2019/08/16/smiledirectclub-files-to-go-public-amidst-concerns-from-dental-associations/ |title=SmileDirectClub files to go public amid concerns from dental associations |last=Rose Dickey |first=Megan |date=August 16, 2019 |website=techcrunch.com |publisher=TechCrunch |access-date=August 20, 2019}} On September 12, 2019, the company went public by offering initial shares at $23, above the expected price of $19–22 per share. SDC's IPO opened at $20.55{{cite web|url=https://finance.yahoo.com/video/smiledirectclub-opens-trading-164753028.html|title=SmileDirectClub opens for trading|publisher=Yahoo Finance|access-date=December 5, 2019}} and closed at $16.67 after the first day, a 28% loss from the initial shares offering.{{cite web|url=https://www.wsj.com/articles/smiledirectclub-plunges-28-on-first-day-of-trading-11568322939|title=SmileDirectClub Plunges 28% on First Day of Trading|last=Osipovich|first=Alexander|website=WSJ|access-date=October 23, 2018}} After the loss, the CFO of the company has stated that the focus of the company will remain the same despite market evaluations.{{cite web|url=https://www.thestreet.com/video/smiledirectclub-cfo-going-public-smilepay-competition--15088649|title=SmileDirectClub CFO on Going Public, SmilePay and Competition|last=Ross|first=Katherine|date=September 12, 2019|website=TheStreet|language=en|access-date=September 13, 2019}}

SmileDirectClub was awarded a business model patent on the process used for plastic aligners for customers on April 28, 2020. SmileDirectClub sued a competitor, Candid Care, calling it "a copycat model". U.S. District Judge Colm Connolly invalidated the patent.{{cite news|last=Yasiejko|first=Christopher|date=December 7, 2020|title=SmileDirectClub Patent on Business Is Invalidated by Judge|url=https://www.bloomberg.com/news/articles/2020-12-07/smiledirectclub-loses-ruling-on-patent-for-its-smileshop|access-date=June 11, 2021|newspaper=Bloomberg.com}}

On April 14, 2021, the company was the subject of a cyberattack. In a filing, SmileDirectClub reported that they were "able to successfully block the attack, no ransom was paid, and the Company's systems and operations are back online and performing normally." The estimated cost was $10 million to $15 million in revenue "from the cyberattack and the associated downtime in treatment planning and manufacturing."{{cite web|last=Lenihan|first=Rob|title=SmileDirectClub Tumbles on Cyberattack News|url=https://www.thestreet.com/investing/smiledirectclub-tumbles-on-cyberattack-news|access-date=May 13, 2021|website=TheStreet|language=en-us}}{{cite news|last=Nakrosis|first=Stephen|date=May 3, 2021|title=SmileDirectClub Shares Fall After Company Reports Cybersecurity Incident|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/smiledirectclub-shares-fall-after-company-reports-cybersecurity-incident-11620080782|access-date=May 13, 2021|issn=0099-9660}}

On August 3, 2021, a workplace shooting occurred at the company's manufacturing facility in Nashville. Two security guards and a manager were injured by the gunman, 22-year-old employee Antonio DeQuan King, who was then shot and killed by responding police officers. SmileDirectClub released a statement after the shooting, saying it was saddened by the events.{{cite news|url=https://www.wkrn.com/news/police-respond-to-reported-workplace-shooting-on-antioch-pike/|title=3 employees shot, suspected gunman killed at workplace shooting on Antioch Pike|publisher=WKRN-TV|last=Baird|first=Brittney|date=August 3, 2021|access-date=August 13, 2021}}{{cite news|url=https://www.newsweek.com/bodycam-video-fatal-smile-direct-club-shooting-prompts-officer-investigation-1616205|title=Bodycam Video of Fatal Smile Direct Club Shooting Prompts Officer Investigation|publisher=Newsweek|last=Impelli|first=Matthew|date=August 4, 2021|access-date=August 13, 2021}} The assailant was armed with a .45 caliber handgun with an extended magazine, and he fired more than 20 times, and then he was shot five times, including three shots in the legs, one in the arm, and one in the chest.{{Cite web |last=Alund |first=Natalie Neysa |title=Smile Direct Club workplace shooting case closed; autopsy shows employee shot five times |url=https://www.tennessean.com/story/news/2021/11/02/nashville-smile-direct-club-workplace-shooting-case-closed-antonio-king/6247491001/ |access-date=2024-12-27 |website=The Tennessean |language=en-US}}

On September 29, 2023, SmileDirectClub filed for Chapter 11 bankruptcy. During the bankruptcy procedure, the company expected to continue operations normally.{{cite web|url=https://finance.yahoo.com/news/yahoo-finance-exclusive-smiledirectclub-files-chapter-11-bankruptcy-eyes-restructuring-221940552.html|title=SmileDirectClub files for Chapter 11 bankruptcy, eyes restructuring|date=September 29, 2023|access-date=September 29, 2023|website=Yahoo|language=en}} However, on December 8, 2023, after a failed last-ditch sale that would help the company to exit bankruptcy, SmileDirectClub announced that it would cease operations, effective immediately and convert their Chapter 11 bankruptcy into a Chapter 7 Bankruptcy Liquidation.{{cite web|url=https://www.bloomberg.com/news/articles/2023-12-08/smiledirectclub-rescue-deal-falls-apart-company-to-liquidate?embedded-checkout=true|title=SmileDirectClub to Liquidate After Last-Ditch Sale Effort Fails|date=December 8, 2023|access-date=December 8, 2023|website=Bloomberg|language=en}}

The American Association of Orthodontists (AAO) has filed complaints with 36 state dental boards, alleging that SmileDirectClub violates regulatory standards.{{cite web|last=Wolf|first=Janine|date=September 23, 2018|title=Orthodontists aren't smiling about teeth-straightening startups|url=https://www.mercurynews.com/2018/09/23/orthodonists-arent-smiling-about-teeth-straightening-startups/|access-date=November 30, 2018|website=mercurynews.com|publisher=The Mercury News}}{{cite news|title=Getting Your Teeth Straightened at a Strip Mall? Doctors Have a Warning|url=https://www.bloomberg.com/news/features/2018-09-20/orthodonists-aren-t-smiling-about-teeth-straightening-startups|newspaper=Bloomberg.com|date=September 20, 2018}} According to SmileDirectClub representatives, 12 of the cases have been closed and no adverse legal action has been taken against the company.{{cite web|title=The Cutthroat World of Orthodontic Invisible Aligner Startups|url=https://www.racked.com/2018/8/8/17661016/smile-direct-club-invisible-aligners-invisalign-candid-co|website=Racked|date=August 8, 2018}} The AAO has stated that only five states confirmed closed cases.

In September 2019, a group of customers filed a class-action lawsuit against the company, claiming SmileDirectClub engaged in false advertising and violating FDA regulations. Due to a clause in SmileDirectClub's consent forms that require disputes to be resolved via arbitration, all but two plaintiffs in the lawsuit withdrew.{{cite news|last1=Griffith|first1=Erin|last2=Eavis|first2=Peter|date=January 21, 2020|title=This Company Says It Will Fix Your Smile. It May Shush You if It Doesn't.|language=en-US|work=The New York Times|url=https://www.nytimes.com/2020/01/21/technology/smiledirectclub-smile-nda.html|access-date=December 5, 2020|issn=0362-4331}}{{cite web|last=Stinnett|first=Joel|date=December 19, 2019|title=All but two plaintiffs drop class action lawsuit against SmileDirectClub|url=https://www.bizjournals.com/nashville/news/2019/12/19/all-but-two-plaintiffs-drop-class-action-lawsuit.html|access-date=May 3, 2021|website=bizjournals.com}}

In January 2020, the New York Times published an article revealing SmileDirectClub's usage of non-disclosure agreements worked to limit information about customers' dissatisfaction with its products, including medical concerns. The company sued Lifehacker{{'}}s parent company for defamation and libel after the site published an article outlining the risks of its products. It also sued state dental boards after making it harder for SmileDirectClub to operate. SmileDirectClub's chief legal officer defended the company's actions, stating, "When we believe that there is an organized campaign to damage our reputation amongst consumers, dentists, or investors, we will defend ourselves and our mission to democratize access to care every chance we get."

In March 2020, CBC News's Marketplace released an investigative report where they found the company had made misleading claims about their aligners and gave questionable treatment plans. Marketplace sent four potential customers wearing hidden cameras to SmileDirectClub locations in the Toronto area. While SmileDirectClub approved all four patients for treatment plans, orthodontists asked to review the treatment plan and said that none should have been approved. In one case, the orthodontist said the proposed treatment plan could increase the likelihood of chips and wear. SmileDirectClub disputed this assessment and stated that the treatment plans would all result in an improved smile appearance. Following the investigative, SmileDirectClub released a list of changes that they were making to the company, including increased training, changes to their forms so customers better understand they need to visit a dentist six months before starting treatment, and making the contact information for treating doctor available as soon as they are approved for treatment.{{cite news|last=Cowley|first=Jenny|date=March 28, 2020|title=Hidden camera investigation finds misleading information, questionable treatment plans from SmileDirectClub|work=CBC News|url=https://www.cbc.ca/news/canada/hidden-camera-investigation-finds-misleading-information-questionable-treatment-plans-from-smiledirectclub-1.5511095}}

SmileDirectClub filed a $2.8 billion lawsuit against NBC News in May 2020, accusing the news organization of broadcasting a story with errors. The NBC Nightly News story cited patients who complained of pain after receiving SmileDirectClub's treatment. One patient featured in the report said her orthodontist diagnosed her with a crossbite "possibly caused by" the company's aligners. Another patient gave testimony that his dentist said SmileDirectClub's aligners "moved his teeth so fast that it caused some of them to detach from the bone." SmileDirectClub's lawsuit claims the story contained more than 40 false and misleading statements. An NBC News spokesperson responded in a statement about the case, "We stand by our reporting and believe this is a meritless claim."{{cite web|last=Coleman|first=Justine|date=May 18, 2020|title=SmileDirectClub files $2.8B lawsuit against NBC|url=https://thehill.com/homenews/media/498421-smiledirectclub-files-28b-lawsuit-against-nbc|access-date=May 3, 2021|website=TheHill|language=en}}{{cite web|title="Things didn't feel right": SmileDirectClub's dental aligners cause problems|url=https://www.nbcnews.com/health/health-news/things-didn-t-feel-right-some-smiledirectclub-customers-report-problems-n1134056|access-date=May 3, 2021|website=NBC News|language=en}} In December 2021, the lawsuit was dismissed after a court ruled SmileDirectClub failed to meet its burden under the Tennessee Public Participation Act, the state's anti-SLAPP law.{{Cite web |title=Tennessee law strengthening First Amendment rights faces test before appeals court in $2.8B lawsuit |url=https://www.tennessean.com/story/news/local/2023/02/09/smiledirectclub-appeals-in-lawsuit-against-nbc-universal-anti-slapp-first-amendment/69885550007/ |access-date=2023-12-16 |website=The Tennessean |language=en-US}}

{{reflist}}

• [https://www.inc.com/anna-hensel/30-under-30-2017-smile-direct-club.html Inc. 30 Under 30]

• {{official website|https://smiledirectclub.com}}

{{Finance links

| name = SmileDirectClub

| symbol = SDC

| reuters = SDC.N

| bloomberg = SDC:US

| sec_cik = 0001775625

| yahoo = SDC

| google = SDC

}}

{{Nashville companies}}

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Category:Telemedicine

Category:American companies established in 2014

Category:American companies disestablished in 2023

Category:Health care companies established in 2014

Category:2014 establishments in Tennessee

Category:Companies that filed for Chapter 11 bankruptcy in 2023

Category:Health care companies based in Tennessee

Category:Companies based in Nashville, Tennessee

Category:Companies formerly listed on the Nasdaq

Category:2019 initial public offerings

Category:Dental companies of the United States