The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Smiledirectclub, Inc. (NASDAQ: SDC) who purchased SmileDirectClub Class A common stock (a) pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company’s September 12, 2019 initial public offering, or (b) during the period from September 8, 2019 through October 2, 2019. The action, which was filed in the United States District Court for the Eastern District of Michigan, alleges that the Company violated federal securities laws.
In particular, the Smiledirectclub lawsuit alleges that (1) administrative personnel, rather than licensed doctors, provided treatment to the Company’s customers and monitored their progress; (2) as a result, the Company’s practices did not qualify as teledentistry under applicable standards; (3) as a result, the Company was subject to regulatory scrutiny for the unlicensed practice of dentistry; (4) the efficacy of the Company’s treatment was overstated; (5) the Company had concealed these deceptive marketing practices prior to the IPO; and (6) 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.
Shareholders have until December 2, 2019 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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