Why SmileDirectClub Stock Was Getting Hit Today

Shares of SmileDirectClub (NASDAQ: SDC), a maker of low-cost dental aligners, were down 12% as of 3:50 p.m. EDT on Monday. The double-digit drop is traceable to a regulatory update from the State of California.

The American Dental Association and the American Association of Orthodontists aren't happy with SmileDirectClub's direct-to-consumer business practices and have been flexing their political muscles in an effort to stop the company's progress.

On Sunday, Gov. Gavin Newsom of California signed Assembly Bill 1519, which may have a big impact on SmileDirectClub.

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Source Fool.com