SmileDirectClub recently lost its appeal against NBC News in a defamation case originally filed in 2020, The Tennessean reported Sept. 23.
Eight notes:
1. In February 2020, NBC News released a report in which it placed hidden cameras at several SmileDirectClub shops and recorded employees misguiding patients.
2. The now-defunct company later issued a statement saying that NBC's investigation misrepresented the company. The company said NBC owed it to the public to correct its errors and offered five clarifications.
3. SmileDirectClub went on to file a $2.8 billion lawsuit against NBCUniversal Media, claiming the news publication ignored facts and broadcast a story with over 40 errors in it.
4. SmileDirectClub also claimed its market cap dropped $950 million after NBC's hidden camera report was published.
5. A judge dismissed the lawsuit in 2021 under the Tennessee Public Participation Act, a law passed in 2019 to protect people's rights to free speech, petition and association.
6. SmileDirectClub filed to appeal the dismissal in February 2023, continuing to accuse NBC of defamation and questioning the constitutionality of the Tennessee Public Participation Act.
7. The lawsuit was the first major test of the Tennessee Public Participation Act, The Tennessean reported.
8. The court ruled that while the teledentistry company provided convincing evidence that two statements included in NBC's report were false, it failed to prove that NBC acted with malice or intentional falsity.