SmileDirectClub Must Face Securities Claims Alleging IPO Hype

Proposed securities class actions alleging a 77% stock-price drop following SmileDirectClub Inc.'s initial public offering will proceed on almost all claims against the dental device maker, several of its executives and directors, and underwriters.

Lead plaintiff the SEIU Health Care Employees Pension Fund adequately pleaded claims for violations of securities laws in connection with SDC’s pre-IPO registration statement, Judge Eli Richardson said Sept. 30 for the US District Court for the Middle District of Tennessee.

• SDC manufactures 3D-printed dental aligners and sells them directly to consumers, according to the complaint.
• SDC’s September 2019 registration statement allegedly misrepresented declining revenue trends, ...