NASHVILLE, Tenn., Oct. 4, 2019 /PRNewswire/ -- Following media
inquiries around recent legal actions filed by industry trade
organizations and/or certain of its members, as well as a research
report issued by a short seller, the company makes the following
statement:
"Recently, there have been media statements by dental trade
organizations and allegations in a class action lawsuit filed in
Nashville federal court that
purports to question the safety and legitimacy of SmileDirectClub's
pioneering teledentistry platform. There is no factual basis nor
scientific or medical justification in these allegations to
substantiate the false claims made about our model and the
state-licensed doctors in our affiliated network. Backed by
evidence, SmileDirectClub denies the allegations made in the class
action lawsuit and by these dental trade organizations and
their members, and we will vigorously defend our business model
against any entity working to limit consumer choice.
These actions are viewed by SmileDirectClub as nothing more than
the latest in a stream of unevidenced and misleading attempts by
dental trade organizations, certain of their members and others
motivated to thwart legitimate competition. Since previous
complaints filed by organized dentistry with state dental boards
and federal government institutions have gone nowhere, this class
action lawsuit is nothing more than an apparent effort to now abuse
the judicial system to promote the same falsehoods previously
spread by organized dentistry, and to intentionally mislead media,
shareholders and potential customers away from the safe, convenient
and affordable benefits of SmileDirectClub's disruptive business
model.
Mimicking an earlier misinformation campaign orchestrated by a
dental trade group, the class action falsely states that we do not
have our 510k certification for clear
aligners, and that we are under investigation by the Food &
Drug Administration ("FDA"). As evidenced on the FDA's website and
in our public filing, SmileDirectClub's manufacturing entity does
have a 510K and manufactures aligners
in compliance with FDA regulations. In fact, within weeks
after the American Dental Association filed a so-called
Citizen Petition that first leveled these spurious charges, the FDA
declined the ADA's request to issue an injunction against
SmileDirectClub (link); rather than inform its members or the media
of this rejection, the ADA continued to promote this filing with
its members. The plaintiffs in the class action suit do nothing
more than mirror and amplify the ADA's misleading claims.
Anticompetitive campaigns directed toward SmileDirectClub have
not gone unnoticed by federal authorities. Fair competition in the
market is the foundation of American business, which is overseen by
the United States Department of Justice ("DOJ") and the U.S.
Federal Trade Commission ("FTC"). Both agencies recently
filed joint amicus briefs before the 11th Circuit Court of
Appeals, SmileDirectClub. LLC. V. Battle, et al., No.
19-12227 in Georgia;
and Leeds & SmileDirectClub, LLC v Jackson, et al., Case
No. 19-11502 in Alabama federal court, in support of
SmileDirectClub.
SmileDirectClub is pleased that the DOJ and FTC have together
determined that an amicus brief was necessary in both of our
lawsuits to stop the efforts by members of state dental boards to
thwart competition from disruptive technology and to short-circuit
the litigation against them for violations of antitrust
laws.
Facts on SmileDirectClub and Teledentistry:
SmileDirectClub is a dental support organization ("DSO") that
pioneered a teledentistry platform in 2014 to democratize access to
teeth straightening solutions by enabling state-licensed dentists
and orthodontists to offer remote management of clear aligner
therapy at a fraction of the historical cost and without
necessitating in-person office visits. Millions of consumers
worldwide are now able to access that care, pending eligibility for
clear aligner therapy as determined by the state-licensed doctors
affiliated with SmileDirectClub. To date, more than 750,000
patients have been successfully treated through SmileDirectClub's
teledentistry platform.
SmileDirectClub's teledentistry platform is modeled after
similar telemedicine platforms; with more than 30 U.S. states
having enacted laws in favor of telemedicine. Indeed, numerous
states across the country have recently enacted laws prohibiting
insurance companies from refusing coverage for services provided
via telehealth. Some progressive states, such as Florida, are embracing teledentistry rather
than letting the financial protectionism of state dental boards
dictate what is in the best interest of consumers in that
state.
After careful study and review by in-house clinicians, major and
well-respected health insurers including Aetna and UnitedHealthcare
have brought SmileDirectClub's clear aligner therapy and
teledentistry platform in-network, recognizing that our model
provides a safe, affordable alternative to traditional offerings,
but without unnecessary radiological exposure, unsightly metal
braces or over-treatment. Mass retail pharmacies such as
Walgreens and CVS have also recognized the consumer benefits of the
treatment offered by SmileDirectClub's affiliated network of
state-licensed doctors and have introduced SmileShops in their
stores.
Since SmileDirectClub's launch in 2014, the company has received
57,000+ Google Reviews with an average score of 4.9 (of 5) and 1300
BBB reviews with an average of 4 (of 5) stars. In the past three
months alone (July to September
2019), 56,520 reviews were written across nine leading
consumer-facing review channels, including 645 reviews on the BBB
with an average of 4.3 (of 5) stars. Of those, 49,133 were
positive, showing an 86.9% positive sentiment rating. [BBB, Yelp,
Google, HighYa, Yotpo, Delighted, ProductReview, TrustPilot, and
Groupon].
To protect our affiliated network of +240 state-licensed
dentists and orthodontists against bullying, attacks and
litigation, a directive that organized dentistry has openly stated
it will engage in, SmileDirectClub does not publicly broadcast the
contact information for our affiliated doctors. Contrary to the
misinformation propagated by dental trade associations every
SmileDirectClub patient receives the name of their treating doctor,
who is licensed in the state in which the patient resides, prior to
the beginning of treatment. That doctor oversees that patient's
treatment from start to finish and is solely responsible for all
aspects of that patient's clinical care. Learn more about
teledentistry and requirements for affiliated network of doctors
here.
A History of Untruths Promoted by Organized Dentistry
Just as SmileDirectClub's teledentistry platform has benefited
consumers, our disruptive technology has threatened dental trade
organizations, including the American Association of Orthodontists
("AAO"), the American Dental Association ("ADA"), state dental
boards and other self-interested parties who we believe have
engaged in a concerted campaign to negatively impact our safe and
efficient business model:
- The AAO continues to promote its 2017 filing of complaints
alleging regulatory and statutory violations by SmileDirectClub in
36 states; to date, 17 of these complaints have been rejected and
formally closed by the state courts, with no state dental board
taking any final action against SmileDirectClub.
- The ADA has pressured its members and government agencies to
review and promote misleading information. Not getting the result
they had hoped for with the FDA, the ADA then submitted a complaint
to the Federal Trade Commission (FTC) featuring many of the same
misleading and untrue statements contained in the FDA citizen
petition, statements which again have been amplified in several
media and membership outlets, including by the lawyers that
coordinated the class action lawsuit.
- The AAO also falsely claims that SmileDirectClub has received
"more than 1000" complaints to the Better Business Bureau about
allegations of broken teeth and clinical issues. SmileDirectClub
responds to every BBB complaint in accordance with the BBB's
guidelines; of the 1216 complaints received over a 5-year period in
which our licensed dentists and orthodontists treated more than
750,000 customers, only 47 complaints were clinical in nature. Each
case has been resolved directly with the customer.
There is no scientific or medical justification to substantiate
the false claims made about the safety, effectiveness or standard
of doctor care using our teledentistry model and the state-licensed
doctors in our affiliated network. We will vigorously defend
ourselves and our business model in order to continue to pursue our
company's mission to increase access to affordable, safe and
convenient teeth straightening solutions."
About SmileDirectClub, Inc.
SmileDirectClub, Inc.
(Nasdaq: SDC) is the industry pioneer as the first
direct-to-consumer medtech platform for transforming smiles.
Through our cutting-edge teledentistry technology and vertically
integrated model, we are revolutionizing the oral care industry.
SmileDirectClub's mission is to unleash the power of people's
smiles to empower them to positively impact their place in the
world. SmileDirectClub was founded by Alex
Fenkell and Jordan Katzman in
partnership with Camelot Venture Group. Available in the U.S.,
Canada, Australia, and the UK, SmileDirectClub is
headquartered in Nashville,
Tennessee. For more information, visit
SmileDirectClub.com.
Contact: SmileDirectClub Media Relations,
press@smiledirectclub.com
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SOURCE SmileDirectClub