NEW YORK, May 11, 2021 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of SmileDirectClub, Inc. («SmileDirectClub» or the «Company») (NASDAQ: SDC). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether SmileDirectClub and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 3, 2021, SmileDirectClub «announced that it experienced a systems outage that was caused by a cybersecurity incident on April 14, 2021 (the ‘Incident’). The Company promptly implemented a series of containment and remediation measures to address the Incident, including temporarily isolating and shutting down affected systems and related manufacturing operations. The Company immediately mobilized its internal engineering security team and has engaged leading forensic information technology firms to assist the Company’s investigation into the Incident.» SmileDirectClub further advised that «[t]he Incident . . . has caused, and may continue to cause, delays and disruptions to parts of the Company’s business, including treatment planning, manufacturing operations, and product delivery. While the Company maintains insurance coverage for certain expenses and potential liabilities that may be associated with the Incident, and the Company plans to pursue coverage for all applicable expenses and liabilities, at this time, the Company expects that the Incident may have a material impact on its business operations and financial results in the second quarter.»
On this news, SmileDirectClub’s stock price fell $2.02 or 19.00% percent to close at $8.61 per share on May 4, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP