SmileDirectClub Lawsuit Update 2026, Company Bankrupt, But 3 Major Settlements Total $48M—Claim Deadlines Passed, Payments Coming Soon
The SmileDirectClub lawsuit update includes three major settlements totaling nearly $48 million: a $31.75M antitrust settlement (final approval November 2025, claim deadline passed October 27, 2025), a $4.8M refund for customers charged after bankruptcy (claim deadline passed March 31, 2025), and a $500K settlement freeing 17,000+ consumers from NDAs. SmileDirectClub permanently closed in December 2023 after filing bankruptcy, leaving millions of customers with incomplete treatments and billions in unpaid claims.
Imagine paying $2,500 for a teeth-straightening treatment—then waking up one day to find the company vanished overnight, your aligners stopped arriving, but the monthly charges kept hitting your bank account.
That nightmare became reality for millions of SmileDirectClub customers when the once-$8 billion company imploded spectacularly, leaving a trail of lawsuits, unpaid refunds, and regulatory investigations that continue unfolding in 2026.
The SmileDirectClub Lawsuit Update: What Just Happened
The SmileDirectClub lawsuit update in late 2025 brought closure to several major cases—but also harsh reality for customers still seeking refunds.
Three major SmileDirectClub lawsuit settlements:
1. $31.75M Antitrust Settlement (Final Approval November 2025)
Align Technology (maker of Invisalign) agreed to pay $31.75 million to settle allegations it engaged in anticompetitive practices with SmileDirectClub to suppress competition in the clear aligner market.
Who was eligible: Anyone in the U.S. who purchased SmileDirectClub aligners between October 22, 2017, and August 18, 2022.
Settlement amount per person: Estimated $25-$60, though payments could range from $10 to higher amounts depending on total valid claims filed.
Claim deadline: October 27, 2025 (CLOSED)
Final approval: November 20-21, 2025
Settlement website: www.SDCAlignerSettlement.com
Current status: The court granted final approval in November 2025. Payments are expected to be distributed in early 2026 to class members who filed valid claims or were automatically identified in SmileDirectClub’s purchase records.
2. $4.8M Bankruptcy Refund Settlement (March 2025 Deadline)
New York Attorney General Letitia James recovered $4.8 million for 28,000+ consumers nationwide who were illegally charged after SmileDirectClub shut down in December 2023.
Who was eligible: Customers enrolled in the SmilePay installment program who were charged after SmileDirectClub ceased operations on December 8, 2023.
Settlement amounts: Varied based on treatment completion status, ranging from partial refunds to full installment payment refunds.
Claim deadline: March 31, 2025 (CLOSED)
Current status: Some refunds were issued automatically. Others required submission of refund requests to Healthcare Finance Direct. The deadline has passed.
3. $500K NDA Settlement (DC Attorney General)
SmileDirectClub agreed to pay $500,000 and release over 17,000 consumers nationwide from restrictive nondisclosure agreements (NDAs) that silenced customer complaints.
What changed: Consumers who previously signed NDAs to get refunds are now free to write online reviews, share experiences on social media, and report problems to regulators without facing lawsuits.
Current status: Settlement finalized. SmileDirectClub must notify affected consumers that NDA provisions are waived.
The SmileDirectClub Collapse: How a $8B Company Vanished Overnight
SmileDirectClub’s bankruptcy and sudden shutdown created the mess that triggered these SmileDirectClub lawsuit settlements.
The timeline of disaster:
September 2023: SmileDirectClub filed for Chapter 11 bankruptcy, reporting nearly $900 million in debt despite once being valued at over $8 billion.
December 8, 2023: While tens of thousands of customers were mid-treatment, SmileDirectClub abruptly announced it was shutting down permanently—canceling all outstanding aligner orders, closing physical locations, laying off employees, and ending the “Lifetime Smile Guarantee.”
December 2023-March 2024: Despite ceasing all services, SmileDirectClub’s website continued telling customers to make remaining monthly payments. Customers who paid $250 down plus $89/month (totaling over $2,500) were told to keep paying even though they’d never receive their aligners.
The New York AG’s office received floods of complaints from consumers being charged for services they’d never receive.
What SmileDirectClub Was Actually Accused Of
The SmileDirectClub lawsuit update reveals multiple legal violations across different cases:
Antitrust violations (Snow v. Align Technology):
Plaintiffs alleged Align Technology (Invisalign’s maker) and SmileDirectClub entered an anticompetitive agreement that violated the federal Sherman Antitrust Act, causing consumers to overpay for SmileDirectClub aligners.
The lawsuit claimed this deal suppressed competition in the direct-to-consumer dental aligner market, limiting consumer choice and keeping prices artificially high.
Consumer fraud and illegal billing (NY AG case):
SmileDirectClub violated New York consumer protection laws by continuing to charge customers after permanently ceasing operations and providing no services in return.
The company’s website misled consumers into believing they were legally required to continue payments despite receiving nothing.
Deceptive NDA practices (DC AG case):
SmileDirectClub forced customers to sign restrictive NDAs as a prerequisite for receiving refunds under its refund guarantee policy—effectively silencing dissatisfied customers and burying complaints about injuries and treatment failures.
DC Attorney General Brian Schwalb stated: “SmileDirectClub promised a simple, safe, and affordable way to straighten teeth and touted five-star reviews—but behind the scenes, the company silenced dissatisfied consumers and buried complaints about injuries caused by its products.”
The Bigger Picture: What Happened to 2 Million Customers?
SmileDirectClub served over 2 million people since its 2014 founding, marketing itself as a revolutionary alternative to traditional braces—faster, cheaper, and done from home without in-person dental visits.
But the “DIY dentistry” model faced fierce criticism from dental associations worldwide warning about risks from treatments that don’t require in-person visits to dentists or orthodontists.
Common SmileDirectClub complaints before bankruptcy:
- Inadequate professional supervision during treatment
- Improper patient assessments leading to unsuitable treatment plans
- Treatment complications including tooth loss, root damage, gum problems
- Deceptive marketing about treatment safety and effectiveness
- Difficult cancellation processes and refund disputes
- Lack of accountability when treatments went wrong
When SmileDirectClub collapsed, the vast majority of its 2 million customers received no refunds, no completed treatments, and no recourse.
The settlement math is brutal:
- $31.75M antitrust settlement ÷ potential millions of eligible customers = $25-$60 each
- $4.8M refund settlement ÷ 28,000 customers = ~$171 average (but many got less)
- Total recovered: ~$48M
- SmileDirectClub’s reported debt at bankruptcy: $900 million
Most customers will never recover their losses.
SmileDirectClub Lawsuit Update: Claim Deadlines Have Passed
Unfortunately, the SmileDirectClub lawsuit update brings bad news for customers who missed claim deadlines:
Antitrust settlement: The October 27, 2025 deadline has passed. If you didn’t file a claim or weren’t automatically identified in SmileDirectClub’s records, you won’t receive payment from this settlement.
Bankruptcy refund: The March 31, 2025 deadline to request refunds from Healthcare Finance Direct has closed.
What if you missed the deadlines?
You cannot file late claims for these settlements. However, you may still have options:
Dispute credit card charges: If you were charged after December 8, 2023, dispute the charges with your credit card company as services were never provided.
File bankruptcy claims: SmileDirectClub’s bankruptcy case is still being processed. Creditors (including customers owed money) may file claims in bankruptcy court, though unsecured creditors typically receive pennies on the dollar, if anything.
Monitor for new settlements: Additional SmileDirectClub lawsuits are pending in various states. Check for updates on state attorney general websites.
Other Active SmileDirectClub Lawsuits
The SmileDirectClub lawsuit update isn’t over. Multiple legal battles continue:
State investigations: Attorneys general in several states beyond New York and DC are actively investigating SmileDirectClub’s practices and may file additional lawsuits or coordinate multi-state settlements.
Treatment injury lawsuits: Individual lawsuits alleging dental injuries, negligence, and product liability continue in state and federal courts, though SmileDirectClub’s bankruptcy complicates recovery.
TCPA violations: SmileDirectClub previously settled an $11.5 million class action for violating the Telephone Consumer Protection Act by sending unsolicited text messages. That settlement distributed approximately $10 per claimant.
Founder/investor liability: Some attorneys are exploring whether SmileDirectClub’s founders or investors can be held personally liable for the company’s misconduct.
What This Means for Direct-to-Consumer Orthodontics
The SmileDirectClub lawsuit update sends shockwaves through the teledentistry industry.
Competitors under scrutiny: Regulators are now reviewing companies like Byte, Candid, and AlignerCo for compliance with consumer protection laws and dental regulations to prevent another SmileDirectClub-style crisis.
Increased regulation coming: Expect stricter oversight of direct-to-consumer dental services, including:
- Mandatory in-person dental examinations before treatment
- Clearer disclosure of risks and treatment limitations
- Stronger refund policies and cancellation rights
- Prohibition of NDAs as refund prerequisites
Consumer distrust: The SmileDirectClub collapse damaged the entire direct-to-consumer aligner market’s reputation, making consumers wary of at-home orthodontic treatments.
FAQ: SmileDirectClub Lawsuit Update
Is SmileDirectClub still in business?
No. SmileDirectClub permanently shut down in December 2023 after filing bankruptcy. All physical locations closed, websites were taken down, and the company ceased all operations.
Can I still file a claim for the settlements?
No. The claim deadlines have passed (October 27, 2025 for the antitrust settlement; March 31, 2025 for the bankruptcy refund). Late claims cannot be accepted.
When will settlement payments be distributed?
The $31.75M antitrust settlement payments are expected in early-to-mid 2026 for those who filed valid claims. Some bankruptcy refunds were already distributed; others were sent to eligible customers who requested them before the March deadline.
How much will I receive?
For the antitrust settlement, payments are estimated between $25-$60 but could be as low as $10 depending on total valid claims filed. Actual amounts won’t be known until all claims are processed.
What if I was never notified about the settlements?
SmileDirectClub’s bankruptcy and shutdown disrupted normal settlement notification processes. Many customers with outdated contact information may not have received notices. Unfortunately, the deadlines still apply.
Can I sue SmileDirectClub independently?
SmileDirectClub no longer exists as an operating company, making individual lawsuits extremely difficult. The bankruptcy process stays most litigation, and there are likely no assets left to pursue.
What about my incomplete treatment—can I get my money back?
The $4.8M refund settlement (claim deadline passed) was the primary avenue for customers charged after the shutdown. For those who missed it, disputing credit card charges or filing bankruptcy claims are the remaining options, though recovery is unlikely.
Will SmileDirectClub relaunch?
No signs point to a relaunch. Initial bankruptcy filings suggested possible restructuring, but in 2024 the company scrapped those plans. Any future entity would face heavy regulation, monitoring, and consumer distrust.
Are other aligner companies safe to use?
That’s a personal decision. Consult with licensed dentists and orthodontists, research companies thoroughly, read independent reviews (not testimonials on company websites), understand refund policies, and never sign NDAs that prevent you from sharing your experience.
What legal protections do I have with other aligner companies?
Federal and state consumer protection laws, dental practice regulations, and your right to file complaints with state dental boards and attorneys general all apply. Never waive these rights by signing broad NDAs.
Resources and Next Steps
Check Your Eligibility (Past Deadlines):
- Antitrust Settlement: www.SDCAlignerSettlement.com
- Contact: Snow v. Align Class Action Settlement Administrator, PO Box 2830, Portland, OR 97208-2830 | 888-788-8304 | [email protected]
Refund Information (Closed):
- Healthcare Finance Direct FAQ page for bankruptcy refund details
- New York AG press release: ag.ny.gov
File Complaints:
- Your state attorney general’s consumer protection division
- FTC Complaint Assistant: ftccomplaintassistant.gov
- State dental board in your jurisdiction
Monitor Updates:
- Check state AG websites for new SmileDirectClub investigations
- Follow bankruptcy court proceedings for creditor claim information
- Search for “SmileDirectClub lawsuit update” periodically for new developments
Protect Yourself:
- Dispute unauthorized charges with your credit card company immediately
- Keep all documentation: receipts, treatment records, communications
- Never sign NDAs that prevent you from sharing truthful experiences
- Consult licensed dental professionals before starting any aligner treatment
The Bottom Line on the SmileDirectClub Lawsuit Update
The SmileDirectClub lawsuit update reveals a company that promised affordable, convenient orthodontics but delivered incomplete treatments, buried customer complaints with NDAs, continued billing customers after shutting down, and left millions with unfinished smiles and empty wallets.
The settlements total nearly $48 million—a fraction of the $900 million in debt and billions in losses suffered by customers, investors, and creditors.
For the relatively few customers who filed valid claims before deadlines, modest payments are coming in 2026. For the vast majority, the SmileDirectClub nightmare offers only expensive lessons about the risks of “too good to be true” healthcare deals and the importance of reading the fine print.
The legal battles aren’t entirely over—state investigations continue, individual lawsuits proceed through bankruptcy court, and regulators are tightening oversight industry-wide.
But for most of SmileDirectClub’s 2 million customers, this chapter is closed. The company that promised to revolutionize smiles instead became a cautionary tale about corporate accountability, consumer protection, and what happens when disruption prioritizes growth over patient safety.
Disclaimer: This SmileDirectClub lawsuit update is based on court documents, settlement agreements, and public records as of January 2026. Settlement claim deadlines have passed. SmileDirectClub is no longer in operation. For legal advice about your specific situation, consult an attorney. This article provides information only and is not legal advice.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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