The state of Tennessee is requesting that SmileDirectClub pay back $6 million in grants for allegedly failing to meet the terms of its contract, CBS affiliate WTVF reported Jan. 31.
Here are eight things to know:
1. The teledentistry company filed for bankruptcy in October but later shut down its global operations after recapitalization efforts failed.
2. SmileDirectClub had promised it would invest $255.5 million into the state once it expanded into the Nashville area in 2016, the news station reported. It was also projected to add more than 2,000 jobs in the state.
3. The state gave the company more than $6 million to support its expansion plans, according to documents from the Tennessee Department of Economic and Community Development.
4. State documents show SmileDirectClub added only 1,108 new jobs and began cutting jobs shortly after expanding into the state, dropping to 650 employees by the time it shut down.
5. Contracts with the state development department require companies to create their required number of jobs by the end of the contract period, or else they must refund the state's money.
6. Jennifer McEachern, a spokesperson for the Tennessee Department of Economic and Community Development, told WTVF that SmileDirectClub may have to pay back its grants because it defaulted on its agreement with the state when it shut down before the end of the contract period, which was seven years.
7. State officials confirmed to the news station that it was also not aware that the company was shutting down. SmileDirectClub was hit with a class-action lawsuit in January alleging it violated the WARN Act by not giving notice of its closing.
8. The state through court filings requested that SmileDirectClub and its lab, Access Dental Lab, pay back the grant money because both companies have shut down.