FAST MONEY: Dental company will pay customers $300 from $27.5m overcharge settlement
Eligible Americans may now receive a $300 coupon from a settlement involving SmileDirectClub, a teledentistry company that filed for bankruptcy last year. This settlement follows allegations that SmileDirectClub’s competitor, Align Technology, engaged in illegal antitrust activities that inflated the prices of SmileDirectClub’s aligners.
Settlement Details and Allegations
The lawsuit accuses Align Technology, the creator of Invisalign aligners, of entering an antitrust conspiracy with SmileDirectClub. The agreement, reached in 2016, allegedly allocated the market for clear teeth aligners between the two companies. Align Technology sold its products through dental offices, while SmileDirectClub sold directly to consumers.
Plaintiffs argue that this agreement allowed SmileDirectClub to charge higher prices for its aligners by preventing Align Technology from competing in the direct-to-consumer market. Align Technology also received a minority stake in SmileDirectClub and a share of its profits as part of the deal.
Settlement Agreement
To resolve the lawsuit, Align Technology has agreed to pay $27.5 million. Although the company has not admitted to any wrongdoing, it opted to settle to avoid the costs and distractions of ongoing litigation. If approved, the settlement will benefit approximately 1.45 million SmileDirectClub users who purchased aligners between October 22, 2017, and August 18, 2022.
In addition to the monetary settlement, each affected customer will receive a $300 coupon for Invisalign treatment. The proposed class action settlement was filed last week in federal court in San Francisco and is awaiting approval from U.S. District Judge Vince Chhabria.
SmileDirectClub’s Financial Troubles
SmileDirectClub, founded in 2014, ceased operations in December following its Chapter 11 bankruptcy filing in September. The company’s financial struggles come amid the ongoing legal battle and market issues.
Other Settlement Opportunities
Consumers might also be eligible for compensation from another class action settlement. Home appliance company Bosch is offering payouts over claims that its microwaves and ovens contained defective variable-frequency drive (VFD) control panels. These defects caused panels to fade, dim, or fail.
The $2 million settlement includes multiple tiers of benefits:
- Tier 1(a): Up to $400 for documented expenses related to past display failures.
- Tier 1(b): $400 for future panel display failures.
- Tier 2: A three-year extended service plan, including replacement of faulty VFD control panels by Bosch.
The deadline for submitting claims for Tier 1(a) benefits was September 3, 2024. However, claims for Tier 1(b) and Tier 2 benefits can be submitted until February 12, 2025.
Additional Settlement Opportunities
Other financial relief programs include one-time payments for taxpayers from a $14.95 million filing settlement and a $40 million privacy settlement for Badoo users.
Also Read: Johnson & Johnson Subsidiary to Decmentlare Bankruptcy, Adds $1.1B to Talc Settle
