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

Align Technology (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.

As quoted in the press release:

Commenting on today’s filing, Align Technology President and CEO Joe Hogan said, “We are surprised that SmileDirectClub (SDC) has asserted that the launch of our Invisalign pilot stores violates our non-compete or confidentiality agreements with SDC. The Invisalign pilot store is the evolution of years of Invisalign consumer marketing designed to connect interested consumers with Invisalign doctor-led offices for treatment. Align has consistently acted in good faith and will work to resolve these allegations as quickly as possible. This dispute does not impact Align’s existing supply agreement with SDC which remains in place through 2019 and includes a minimum volume commitment. We are currently evaluating the potential impact that this could have on our consolidated financial statements and we do not anticipate this matter to impact expected volumes and revenues from SDC for 2018. Align will continue to operate its Invisalign store pilot program, which includes a pilot store in San Francisco and a new pilot store that opened in San Jose, California last week.”

Click here to read the full press release.