SmileDirectClub hit with another lawsuit from shareholder
A SmileDirectClub investor has filed a lawsuit against the company, alleging that their deceptive practices caused him to experience significant economic loss, Legal Newsline reports.
The suit claims that although SmileDirectClub raised about $1.27 billion from its initial public offering in early September, the company's share price fell almost 9 percent on Sept. 24 when it was hit with a class-action lawsuit was for alleged fraud and misleading consumers.
Since the IPO, SmileDirectClub’s shares have dropped nearly 44 percent.
Earlier this month, SmileDirectClub shareholders filed a class-action lawsuit claiming the company made false and misleading statements. Along with making false statements, the investors claim SmileDirectClub failed to disclose material adverse facts about the company's business, operations and prospects.
The new lawsuit alleges SmileDirectClub's registration statement filed Sept. 13 failed to disclose that the company didn't qualify as teledentistry because treatment was provided by administrative personnel instead of dentists.
The plaintiff is seeking a jury trial, attorneys' fees, court costs, interest and just relief.
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