Why SmileDirectClub Stock Popped 9.5% Today
Shares of SmileDirectClub (NASDAQ: SDC) closed 9.5% higher in Thursday trading after the company announced yesterday evening that 21 out of 22 class action plaintiffs "have voluntarily withdrawn their claims" against the company in court.
The lawsuit in question was filed earlier this year by customers and orthodontists competing with SmileDirectClub. It alleged that the company was committing fraud and false advertising by allowing unlicensed administrative personnel, rather than licensed orthodontists, to fit patients for plastic "molds" used to straighten their teeth.
In response, SmileDirectClub "maintained that there was no merit to these claims being filed in court," and the company is now declaring victory, saying "these withdrawals are a confirmation of our position." (Consumers seem to agree. SmileDirectClub's sales grew 50% last quarter.)
Source Fool.com
