IN RE SMILEDIRECTCLUB, INC. SECURITIES LITIGATION - Articles

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IN RE SMILEDIRECTCLUB, INC. SECURITIES LITIGATION

Posted by: Karen Belcher on Mar 18, 2022

Court: TN Court of Appeals

Attorneys 1: Steven A. Riley; Milton S. McGee, III; and Elizabeth O. Gonser, Nashville, Tennessee, and Scott D. Musoff, New York, New York, for the appellants, SmileDirectClub, Inc.; David Katzman; Kyle Wailes; Steven Katzman; Jordan Katzman; Alexander Fenkell; Susan Greenspon Rammelt; Richard Schnall; and Camelot Venture Group.

Attorneys 2: John S. Hicks and Christopher E. Thorsen, Nashville, Tennessee, and Sharon L. Nelles, Andrew J. Finn, and Shane M. Palmer, New York, New York, for the appellants, J.P. Morgan Securities LLC; Citigroup Global Markets Inc.; BofA Securities, Inc.; Jefferies LLC; UBS Securities LLC; Credit Suisse Securities (USA) LLC; Guggenheim Securities, LLC; Stifel, Nicolaus & Company, Incorporated; William Blair & Company, LLC; and Loop Capital Markets LLC.

Attorneys 3: Jerry E. Martin, David W. Garrison, and Seth M. Hyatt, Nashville, Tennessee, for the appellees, Brittany Vang and Matthew G. Mancour.

Judge(s): FRIERSON

In this action alleging violations of a federal securities law due to purported misrepresentations and omissions in an initial public stock offering, the plaintiffs sought to certify a class consisting of all persons who purchased common stock during the initial public offering. The trial court certified the class, determining that the requirements of Tennessee Rule of Civil Procedure 23 had been satisfied. The defendants have appealed. Although we dismiss the plaintiffs’ claims under section 12 of the Securities Act of 1933, codified at 15 U.S.C. § 77l, due to lack of standing, we otherwise affirm the trial court’s certification of the proposed class.

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