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Why SmileDirectClub Is Suing NBCUniversal For $2.8B

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Why SmileDirectClub Is Suing NBCUniversal For $2.8B

SmileDirectClub Inc (NASDAQ: SDC) said Monday afternoon it's seeking approximately $2.8 billion in damages from Comcast Corporation's (NASDAQ: CMCSA) NBCUniversal.

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.

An NBC spokesperson told Benzinga: “We stand by our reporting and believe this is a meritless claim.”

SDC Stock

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

Related Links:

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BofA Downgrades SmileDirectClub, Sees Slower Recovery Ahead

 

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