What Happened At NBC News
At the heart of the lawsuit is NBC's Feb. 13 episode of "Nightly News", which SmileDirectClub said featured "more than 40 false and misleading statements" about the company and the treatment patients receive. Its reputation was "wrongly sullied and its business unjustly harmed" from the NBC story.
SmileDirectClub gave NBC "every opportunity" to retract its report and "correct the record voluntarily," the company's outside counsel said in the press release. But the media outlet chose not to so it now has no choice but to take legal action to "defend its brand and the reputation of hundreds of doctors."
Why It's Important For SmileDirectClub
SmileDirectClub claims NBC misled its viewers and readers about the safety patients receive, the involvement of licensed dentists and orthodontists, and the benefits that patients receive when they're treated.
SmileDirectClub argues NBC's report prevented patients from seeking treatment which translated to investors losing "millions, if not billions of dollars," the company said.
On its end, NBC News said, "We stand by our reporting and believe this is a meritless claim," according to The Wall Street Journal.
SmileDirectClub's stock closed Monday's session at $6.76 per share. Since going public in September of 2019, the stock has an all-time closing high of $21.20 and all-time low of $3.64