The dramatic corporate collapse of SmileDirectClub continues to generate legal activity long after the company’s operational demise. Once a pioneering force in teledentistry, the now-bankrupt enterprise maintains courtroom relevance through multiple ongoing legal proceedings. While the company’s shares were removed from the Nasdaq exchange and now trade as penny stocks over-the-counter under the ticker SDCCQ, former customers face a critical deadline.
Crucial Compensation Window Closing Soon
A significant antitrust settlement presents a final opportunity for reimbursement to eligible customers. Those who purchased aligners from SmileDirectClub between October 2017 and August 2022 may claim compensation ranging from $40 to $60. The absolute deadline to file these claims falls on October 27, 2025, after which no further applications will be accepted.
This $31.75 million settlement with Align Technology, manufacturer of Invisalign, addresses allegations that anticompetitive arrangements artificially inflated prices for dental aligners. Although SmileDirectClub no longer operates, the legal consequences of its business practices continue to unfold.
Additional Refund Programs Active
Simultaneously, a separate restitution program is underway following action by New York’s Attorney General, who secured $4.8 million in refunds for customers who experienced continued billing after the company’s bankruptcy declaration. This additional avenue for reimbursement highlights the complex aftermath facing former clients.
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From Market Leader to Complete Liquidation
The company’s downfall represents a stunning reversal of fortune for an enterprise once valued at $8.9 billion. After filing for Chapter 11 bankruptcy protection in September 2023, SmileDirectClub underwent complete liquidation. Its technology assets were acquired by SmileSet, while its core business operations ceased entirely.
The shares, now virtually worthless, serve as a stark reminder of the company’s precipitous decline from industry disruptor to defunct entity.
Ongoing Legal Challenges
Beyond customer compensation claims, additional legal proceedings continue to work through the court system. Former partners and additional claimants are pursuing various actions, including litigation alleging violations of the WARN Act regarding employee termination procedures during the company’s final days.
The question of who might ultimately benefit from the remnants of this former market leader remains with the courts—and with investors and customers who file their claims before approaching deadlines.
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