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SmileDirectClub

SmileDirectClub was a teledentistry company. The company was co-founded in 2014 by Jordan Katzman and Alex Fenkell. It was based in Nashville, Tennessee, United States.[3][4] SmileDirectClub shut down in December 2023, less than three months after filing for Chapter 11 bankruptcy.[5][6]

Company type

OTC Pink: SDCCQ (since 2023)
Nasdaq: SDC (2019–2023)

2014 (2014)

Jordan Katzman
Alex Fenkell

December 11, 2023 (2023-12-11)

Bankruptcy

,
United States

Increase $750 million (2019)[2]

6,300

Products[edit]

SmileDirectClub produced 3D-printed clear aligners.[7] SmileDirectClub aligners were a competitor of traditional braces and clear alignment companies like Invisalign.[8]


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.[9]


While most business and dentistry was conducted online, the company had 300 retail locations across the United States, Canada, Australia and the United Kingdom.[10][11]

Criticisms[edit]

The American Association of Orthodontists (AAO) has filed complaints with 36 state dental boards, alleging that SmileDirectClub violates regulatory standards.[33][34] According to SmileDirectClub representatives, 12 of the cases have been closed and no adverse legal action has been taken against the company.[35] The AAO has stated that only five states confirmed closed cases.[35]


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.[36][37]


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, and/or investors, we will defend ourselves and our mission to democratize access to care every chance we get."[36]


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.[38]


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."[39][40] 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.[41]

Inc. 30 Under 30

Official website

Bloomberg