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BOSTON, Oct. 04, 2019 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, informs investors that there has been a class action lawsuit filed against SmileDirectClub, Inc. (NASDAQ: SDC) and certain of its officers alleging violations of the federal securities laws. Class members interested in serving as lead plaintiff are required to move for appointment by December 2, 2019 and are encouraged to contact Block & Leviton LLP to learn more.
The class action complaint, which was filed in the Eastern District of Michigan and captioned Andre v. Smiledirectclub, Inc. et al., No. 19-cv-12883 (E.D. Mich.) alleges that Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations and prospects. Among other things, it is alleged that the Defendants failed to disclose to investors that administrative personnel, rather than licensed doctors, provided treatment to the Company’s customers and, as a result, the Company was subject to regulatory scrutiny for the unlicensed practice of dentistry.
These allegations came to light on September 24, 2019, when a group of dentists, orthodontists and consumers filed a lawsuit against the SmileDirectClub, alleging that the Company was engaged in the unlicensed practice of dentistry, and false and deceptive advertising. Upon the filing of this lawsuit, the Company’s share price fell $1.47, or nearly 9%, to close at $15.68 per share. Within the last week, the Company’s stock was trading as low as $12.94 per share, a nearly 44% decline from its $23.00 per share IPO price.
If you purchased or otherwise acquired SmileDirectClub securities pursuant and traceable to the registration statement and prospectus issued in connection with the Company’s September 13, 2019 IPO, and have questions about your legal rights, or possess information relevant to this matter, you are encouraged to contact attorney Mark Delaney at (617) 398-5600, by email at firstname.lastname@example.org, or by visiting http://shareholder.law/sdc.
Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nation's largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.
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