SmileDirectClub Defends Its Top Doctor, Calls State Board Allegations 'Unfounded and Untrue'

SmileDirectClub Inc.’s SDC Chief Clinical Officer may lose California license after a 2-year dental board investigation.

What Happened

SmileDirectClub, which calls itself a pioneer in direct-to-customer “oral care med” tech, has released a statement saying it “stands behind its doctors.” The company responded to accusations against its Chief Clinical Officer Jeffrey Sulitzer calling the board’s claims “baseless” and “entirely without merit.”

Sulitzer is facing California disciplinary action, as he's being accused of violating the state law, defrauding state dental regulators, and acting with gross negligence toward patients while “furthering” SmileDirectClub’s business expansion. Sulitzer stands to lose his 16-year old California dental license, according to Reuters.

Why It Matters

SmileDirectClub is expected to release Q4-2019 results on Feb 25.

The teledentistry company has been increasing its reach by working with dentists and orthodontists while previously selling direct-to-customers exclusively. 

California’s Department of Consumer Affairs revealed to Reuters that the complaint filed against Sulitzer may result in a formal disciplinary hearing in Sacramento on Nov. 12. The Office of Administrative Hearings, however, has not yet scheduled it.

Complaints regarding SmileDirectClub’s dental aligners have been piling up, with Reuters discovering 60 complaints related to loose or lost teeth, bite misalignments, jaw pain and need for costly treatments after having used the company’s products. 

What Else Is There

SmileDirectClub has been the center of controversy since NBC news revealed an investigation into a “growing list of complaints.” The company had then released a statement countering NBC’s story, stating it did not include “one interview or statement from the more than 750,000 satisfied customers.”

Price Action

SmileDirectClub shares traded 0.16% higher at $12.39 in the after-hours session on Wednesday. The shares had closed the regular session 5.43% lower at $12.37.

Photo Credit: Public domain photo via Wikimedia.