DENVER, CO / ACCESSWIRE / November 20, 2019 / Franklin D. Azar & Associates, P.C. announces that it is investigating a lawsuit filed against SmileDirectClub, Inc. ("SmileDirect" or the "Company") on behalf of persons and entities that purchased or otherwise acquired SmileDirect Class A common stock pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company's September 2019 initial public offering. SmileDirect investors who have purchased shares of SmileDirect Class A common stock are encouraged to contact Frank Azar and Associates at [email protected] or call 844-241-9475 to learn more about the case.
Interested SmileDirect shareholders have until December 2, 2019 to apply to be lead plaintiff. The class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
Background on this Class Action:
In September 2019, SmileDirect sold approximately 58.5 million shares of Class A common stock at a price of $23.00 per share in an initial public offering ("IPO"). 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 dentists' false advertising 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, SmileDirect's share price fell $1.47, or nearly 9%, to close at $15.68 per share on September 24, 2019. The Company's stock continued to decline over the next two trading sessions by $2.74, or over 17%, to close at $12.94 per share on September 26, 2019, on unusually heavy trading volume.
The lawsuit alleges that SmileDirect's Registration Statement was false and misleading and omitted to state material adverse facts. Specifically, the lawsuit alleges that the Company failed to disclose to investors: (1) that administrative personnel, rather than licensed doctors, provided treatment to the Company's customers and monitored their progress; (2) that, as a result, the Company's practices did not qualify as teledentistry under applicable standards; (3) that, as a result, the Company was subject to regulatory scrutiny for the unlicensed practice of dentistry; (4) that the efficacy of the Company's treatment was overstated; (5) that the Company had concealed these deceptive marketing practices prior to the IPO; and (6) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis
If you have purchased at least 30,000 shares of SmileDirect Class A common stock, you may have a claim for damages, and you may be eligible to seek a position in the case as a lead plaintiff. Please contact the Azar Law Firm's shareholder rights team at [email protected] or call 844-241-9475.
Frank Azar and Associates' securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
SOURCE: Franklin D. Azar & Associates P.C.