Delta Dental Plan Defeats Smile Direct’s Defamation Lawsuit

SmileDirectClub LLC can’t proceed with a lawsuit alleging that a dental insurance plan made false statements about the teledentistry provider that were designed to drive its patients away.

Delta Dental Plans Association’s statements about SDC and contractor Smile of Tennessee PC are protected by qualified privilege because Delta had a legal duty to tell its members the reasons for denying a claim, the Illinois Appellate Court, First District, said.

SDC didn’t overcome the privilege because it failed to show Delta intentionally made false statements or acted with reckless disregard for their truth, the court said in affirming the suit’s dismissal. ...