WILMINGTON, DE / ACCESSWIRE / October 9, 2019 / Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of SmileDirectClub, Inc. (NASDAQ GS:SDC)?
- Did you purchase your shares in connection with the September 2019 initial public offering?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Eastern District of Michigan on behalf of all persons or entities that purchased the common stock of SmileDirectClub, Inc. ("SmileDirectClub" or the "Company") (NASDAQ GS: SDC) in connection with the Company's September 2019 initial public offering ("IPO"), alleging violations of the Securities Exchange Act of 1933 against the Company, the sponsors of the IPO, and certain of the Company's officers (the "Complaint").
If you purchased shares of SmileDirectClub in connection with the IPO and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) administrative personnel, rather than licensed doctors, provided treatment to SmileDirectClub's customers and monitored their progress; (2) SmileDirectClub's practices did not qualify as teledentistry under applicable standards; (3) SmileDirectClub was subject to regulatory scrutiny for the unlicensed practice of dentistry; (4) the efficacy of SmileDirectClub's treatment was overstated; (5) SmileDirectClub had concealed these deceptive marketing practices prior to the IPO; and (6) as a result of the foregoing, defendants' positive statements about SmileDirectClub's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis. As a result of defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on September 13, 2019, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold approximately 58.5 million shares of Class A common stock at a price of $23.00 per share. The Company received proceeds of approximately $1.27 billion from the Offering, net of underwriting discounts and commissions. The proceeds from the IPO were purportedly to be used for employee incentive bonuses, certain equity arrangements, and general corporate purposes.
Then, on September 24, 2019, a class action complaint was filed by dentists, orthodontists, and consumers against SmileDirectClub, alleging false advertising, fraud, negligence, and unfair and deceptive trade practices. The complaint disputed the accuracy of several statements in the Registration Statement and highlighted that the Company is subject to litigation for operating as a dentist without proper licensing in several states, as well as other litigation.
On this news, shares of SmileDirectClub fell over 8%, closing at $15.68 per share on September 24, 2019, on heavy trading volume. By the commencement of this action, the Company's stock was trading as low as $12.94 per share, a nearly 44% decline from the $23 per share IPO price.
If you wish to serve as lead plaintiff, you must move the Court no later than December 2, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
Attorney advertising. Prior results do not guarantee a similar outcome.
CONTACT:
Rigrodsky & Long, P.A.
Seth D. Rigrodsky
Timothy J. MacFall
(888) 969-4242
(516) 683-3516
Fax: (302) 654-7530
[email protected]
http://www.rigrodskylong.com
SOURCE: Rigrodsky & Long, P.A.