SmileDirectClub, which sells teeth aligners online, has worked to limit information about customer dissatisfaction.
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SmileDirectClub just sued NBC for $2.8 billion, claiming reports about its teeth-straightening products were defamatory
SmileDirectClub is suing Comcast's NBCUniversal for roughly $2.8 billion, claiming its reports about the company's teeth-straightening...SmileDirectClub is suing Comcast's NBCUniversal for roughly $2.8 billion, claiming its reports about the company's teeth-straightening products were defamatory, The Wall Street Journal reported Monday. The lawsuit alleges that reporting earlier this year by NBC News describing customers' complaints was "willfully and knowingly" false and misleading, according to a press release. SmileDirectClub said its value plummeted by $950 million following the reports. "We stand by our reporting and believe this is a meritless claim," NBC News told The Wall Street Journal. Visit Business Insider's homepage for more stories. Teeth-straightening startup SmileDirectClub filed a lawsuit Monday against NBC Universal Media for approximately $2.8 billion over news reports it says were defamatory, as first reported by The Wall Street Journal. SmileDirectClub claims that NBC, which is owned by Comcast, intentionally made inaccurate claims about the company's products in stories earlier this year that described customers' complaints about its products and featured an orthodontics professor warning about teledentistry. NBC "willfully and knowingly published dozens of false and misleading statements about SDC," the suit alleges, claiming NBC knew "that their actions would cause significant economic and reputational harm to the company." SmileDirectClub claimed its public valuation dropped by $950 million following the NBC reports. "SDC brought this lawsuit for its employees and officers, for its affiliated doctors, for its shareholders, and to recover from the damage NBC caused to its business and reputation," SmileDirectClub attorney J. Erik Connolly told Business Insider in a statement. "SDC respects the role that the media play in our society, but expects truthful accounts. NBC's reports were defamatory, not truthful, and the facts show that NBC knew it was not telling the truth," Connolly said. "We stand by our reporting and believe this is a meritless claim," NBC News told The Wall Street Journal. SmileDirectClub sells clear teeth aligners directly to consumers as well as through dentists and orthodontists, and had been a highly touted startup that was privately valued as high as $8.9 billion, according to PitchBook, before tanking when it went public in September 2019. The company has continued to struggle financially this year, missing analyst expectations last quarter due to back-office expenses and inefficient manufacturing operations.Join the conversation about this story » NOW WATCH: How the Navy's largest hospital ship can help with the coronavirus
Teeth-straightening startup SmileDirectClub is set to starting trading Thursday after raising $1.3 billion in its IPO
Digital health company SmileDirectClub will start trading on Thursday under the ticker "SDC." The company priced...Digital health company SmileDirectClub will start trading on Thursday under the ticker "SDC." The company priced its shares at $23 apiece on Wednesday, according to a source familiar with the offering. The share price values SmileDirectClub at $8.9 billion ahead of its first day of trading. SmileDirectClub's offering is part of a wave of digital health companies entering the public markets after a three-year drought. Visit Business Insider's homepage for more stories. Digital health company SmileDirectClub is set to go public on Thursday after pricing its initial public offering on Wednesday. The company priced its shares at $23 apiece on Wednesday, according to a source familiar with the offering. The share price values SmileDirectClub at $8.9 billion ahead of its first day of trading. Nashville-based SmileDirectClub sold 58.5 million shares, raising $1.3 billion in the offering. SmileDirectClub sells clear aligners for teeth, as an alternative to what you might get from an orthodontist. While it typically costs anywhere from $3,000 to $7,000 to get traditional braces or Invisalign-brand aligners, SmileDirectClub goes for a fraction of that — you can either pay $1,895 up front, or a total of $2,290 spread out over two years. Read more: These 10 buzzy digital health startups are poised to go public in the next 12 months The idea behind SmileDirectClub is to make straightening teeth more affordable by cutting out the steps of going in person to a dentist or orthodontist to get braces or other alignments. The company was started by Alex Fenkell and Jordan Katzman in 2014. In October, SmileDirectClub raised $380 million from the private-equity firm Clayton, Dubilier & Rice and the venture firms Kleiner Perkins and Spark Capital. The round valued the company at $3.2 billion, up from $275 million just two years earlier. Read more: SmileDirectClub's IPO could make the startup's top investors into billionaires. According to the IPO filing, SmileDirectClub's net loss widened from $33.8 million in the first half of 2018 to $52.9 million in 2018. The company has increased its customer count from 22,000 in 2016 to about 246,000 in the first half of this year.Join the conversation about this story » NOW WATCH: Look inside the 3D-printed Mars home that NASA awarded $500,000