Align Tech to close InvisAlign stores as result of arbitration with Smile Direct Club

Align Technology (NSDQ:ALGN) said today that it is closing its Invisalign stores due to the outcome of arbitration with SmileDirectClub. San Jose, Calif.-based Align Technology, known for its clear orthodontic alignment devices, said that it will close its Invisalign stores by April 3. The stores were first piloted in 2017 and have since expanded into 12 locations by last year, the company said. The arbitration between Smile Direct Club and Align Technology concluded on January 23, with the arbitrator releasing his decision on March 4. In his decision, the arbitrator held that Align breached a non-compete provision applicable to Smile Direct Club and that Align “misused the SDC Entities’ confidential information and violated fiduciary duties” to Smile Direct Club. The arbitrator ordered Align to close its Invisalign stores by April 3 and enjoined the company from opening new Invisalign stores or providing “certain services in physical retail establishment” in connection with the clear aligner devices, and ordered the company to stop using confidential information from SDC. In its decision, the arbitrator also extended the expiration date of a non-compete provision between the two to August 18, 2022. No financial damages were awarded, and Align said that the decision does not affect its existing supply agreement with SDC, which will remain in place through 2019. Align said it is currently evaluating the financial impacts of the closing and its di...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Dental aligntechnology Source Type: news