SmileDirectClub Settles Lawsuit Brought by Washington D.C. AG -- Update

By Will Feuer

SmileDirectClub agreed to pay $500,000 and release thousands of people from certain provisions in the company's general release forms to settle a lawsuit filed last year by the Washington D.C. Attorney General Brian Schwalb.

The company said it has tailored the non-disclosure provision in its general release form more narrowly, something SmileDirectClub said it had planned to do before the lawsuit was filed in December 2022.

The teeth-straightening company said the lawsuit falsely alleged that it stifled consumer reviews by requiring consumers to agree to a confidentiality clause in order to get a prorated refund for those who wanted to return aligners after 30 days.

SmileDirectClub said it doesn't require customers to execute a release or any form of non-disclosure before or during treatment, or in order for a customer to get a prorated refund.

"SmileDirectClub promised a simple, safe, and affordable way to straighten teeth and touted five-star reviews-but behind the scenes, the company silenced dissatisfied consumers and buried complaints about injuries caused by its products," Schwalb said. "SmileDirectClub can no longer use NDAs to silence consumers as a prerequisite for seeking refunds, and thousands of SmileDirectClub customers across the country will be released from gag provisions in agreements they previously signed."

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

June 22, 2023 12:54 ET (16:54 GMT)

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