SmileDirectClub and its Products
- SmileDirectClub produced 3D-printed clear aligners.
- SmileDirectClub aligners were a competitor of traditional braces and clear alignment companies like Invisalign.
- Communication with licensed orthodontic professionals and other SmileDirectClub staff took place virtually.
- Impression kits were sent to customers, after which teeth molds were reviewed by dentists or orthodontists who oversaw the treatment process.
- The company reportedly worked with 225 licensed professionals.
History and Financials
- The company initially partnered with Align Technology as an exclusive third-party distributor for its aligners.
- After a dispute over violation of a non-compete clause, Align was ordered to close its retail locations and return its ownership stake in SmileDirectClub.
- In 2021, SmileDirectClub was ordered to pay Align $43.4 million (plus $2.1 million in interest) for the ownership stake.
- SmileDirectClub raised $380 million in an investment round led by Clayton, Dubilier & Rice and Kleiner Perkins in October 2018.
- NBA player Draymond Green was an early investor in the company.
Criticisms and Controversies
- The American Association of Orthodontists (AAO) filed complaints with 36 state dental boards, alleging that SmileDirectClub violates regulatory standards.
- SmileDirectClub representatives stated that 12 of the cases have been closed and no adverse legal action has been taken against the company.
- The AAO has stated that only five states confirmed closed cases.
- In September 2019, a group of customers filed a class-action lawsuit against the company, claiming false advertising and FDA regulation violations.
- SmileDirectClub used non-disclosure agreements to limit information about customers' dissatisfaction with its products, including medical concerns.
Cyberattack and Workplace Shooting
- SmileDirectClub was the subject of a cyberattack in April 2021, but successfully blocked the attack without paying a ransom.
- The estimated cost of the cyberattack was $10 million to $15 million in revenue.
- A workplace shooting occurred at SmileDirectClub's manufacturing facility in Nashville in August 2021, resulting in injuries to two security guards and a manager.
- The gunman, an employee, was shot and killed by responding police officers.
- SmileDirectClub released a statement expressing sadness over the events.
Bankruptcy and Liquidation
- SmileDirectClub filed for Chapter 11 bankruptcy in September 2023.
- The company expected to continue operations normally during the bankruptcy procedure.
- However, in December 2023, SmileDirectClub announced that it would be liquidating and shutting down all operations immediately after a failed last-ditch sale.
- The announcement came after the bankruptcy and liquidation process.
SmileDirectClub was a teledentistry company. The company was co-founded in 2014 by Jordan Katzman and Alex Fenkell. It was based in Nashville, Tennessee, United States. SmileDirectClub shut down in December 2023, less than three months after filing for Chapter 11 bankruptcy.
 | |
| Type | Public |
|---|---|
| OTC Pink: SDCCQ (since 2023) Nasdaq: SDC (2019–2023) | |
| Industry | Teledentistry |
| Founded | 2014 |
| Founders | Jordan Katzman Alex Fenkell |
| Defunct | December 11, 2023 |
| Fate | Bankruptcy |
| Headquarters | , United States |
| Revenue |  $750 million (2019) |
Number of employees | 6,300 |
| Website | smiledirectclub |
