NASHVILLE, Tenn., March 6, 2019 /PRNewswire/
-- SmileDirectClub, the market leader and
pioneer of doctor-directed, remote invisible aligner therapy, today
announced the decision in the arbitration brought by
SmileDirectClub against Align Technology Inc. (NASDAQ: ALGN) for
violations of restrictive covenants among other claims.
After reviewing an overwhelming amount of evidence, Align was
found to have breached the non-compete and other restrictive
provisions applicable to the members of SmileDirectClub, including
that Align misused SmileDirectClub's confidential information and
violated fiduciary duties to SmileDirectClub. The ruling
requires Align to close down all of its 12 Invisalign stores by
April 3, 2019 and enjoins Align from
opening any new stores or providing certain services in connection
with the marketing and sale of clear aligners. Moreover, the
expiration date of the non-compete provision has been extended to
August 18, 2022. Align is also
permanently enjoined from using SmileDirectClub's confidential
information.
As part of the ruling, Align has been ordered to return its
ownership stake back to SmileDirectClub for the price of its stated
capital account balance as of October
31, 2017 – a price which is significantly below the
fair market value of its investment given the valuation of
$3.2 billion that SmileDirectClub
obtained last summer. With this order Align will no longer be an
investor in SmileDirectClub. This decision has no impact on Align's
existing supply agreement with SmileDirectClub through 2019.
"We are extremely pleased with the outcome of the arbitration.
This ruling validates the credibility of SmileDirectClub's business
model to democratize confidence and provide our more than 400,000
customers with convenient and affordable access to care," said
Alex Fenkell, Co-founder of
SmileDirectClub. "This decision allows SmileDirectClub to stay
focused on our growth and continue our mission to close the gap
around access to orthodontic care in the U.S. and beyond."
Founded four years ago, SmileDirectClub is
revolutionizing the process for getting a straighter smile. Today,
the company is valued at $3.2
billion, employs more than 4,300 people, and has helped more
than 400,000 people achieve their best smile.
About SmileDirectClub
SmileDirectClub was
founded on a simple belief: Everyone deserves a smile they love.
Recognizing an opportunity to increase access to dental care, the
company pioneered the creation of cutting-edge platforms and
technology for doctor-directed, remote aligner therapy. With a
digital network of more than 240 affiliated licensed dentists and
orthodontists overseeing customer treatment, from impressions made
with an at-home kit or from a digital scan at one of the
200 SmileShops across the
United States and Canada
through the end of the customer's
treatment, SmileDirectClub has made orthodontic solutions
more affordable and convenient than ever
before. SmileDirectClub was founded in 2014 by
Alex Fenkell and Jordan
Katzman in partnership with Camelot Venture Group, whose
portfolio companies include 1-800 CONTACTS and Quicken Loans, and
is based in Nashville, Tennessee.
For more information, visit SmileDirectClub.com.
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SOURCE SmileDirectClub