Align Technology Rejects SmileDirectClub Claim That Invisalign Store Pilot Constitutes Breach of Non-Compete and Confidentiality Provisions

February 28, 2018 16:59 ETSAN JOSE, CA--(Marketwired - February 28, 2018) - Align Technology, Inc. (NASDAQ:ALGN) today announced that it included the following disclosure in its Form 10-K for the year ended December 31, 2017. Align is currently evaluating the potential impact that this could have on our consolidated financial statements; however, Align does not anticipate this matter to impact its expected volumes and revenues from SmileDirectClub (SDC) for 2018.In February 2018, we received a communication on behalf of SDC Financial LLC, SmileDirectClub LLC, and the Members of SDC Financial LLC other than Align (collectively, the " SDC Entities " ) alleging that the launch and operation of our Invisalign store pilot program constitutes a breach of non-compete provisions applicable to the members of SDC Financial LLC, including Align. As a result of this alleged breach, SDC Financial LLC has notified Align that its members (other than Align) seek to exercise a right to repurchase all of Align ' s SDC Financial LLC membership interests for a purchase price equal to the current capital account balance of Align. The SDC Entities also allege that Align has breached confidentiality provisions applicable to the SDC Financial LLC members and demands that Align cease all activities related to the Invisalign store pilot project, close existing Invisalign stores and cease using SDC ' s confidential information. Align disputes the allegations that it has breached its obligations to the ...
Source: Dental Technology Blog - Category: Dentistry Source Type: news