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SmileDirectClub Loses Defamation Lawsuit Against NBC News

Daily Legal Briefing by Daily Legal Briefing
September 27, 2024
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SmileDirectClub Loses Defamation Lawsuit Against NBC News
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“NBC must be held accountable for its abuse of power and betrayal of trust,” attorneys wrote in their initial claim. “Viewers and readers across the country turn to the media for the information they need to make decisions about their health and well-being.”


SmileDirectClub has lost an appeal in the defamation lawsuit it filed against NBC News.

According to The Tennessean, the now-defunct Nashville-based company had accused NBC Universal Media of publishing dozens of “false and misleading claims” about the company in a February 2020 article. In court documents, attorneys for SmileDirectClub said that their client was seeking upward of $2.85 billion in damages.

In its lawsuit, SmileDirectClub asserted that NBC “knowingly and intentionally” made a series of “factually inaccurate, misleading, and defamatory” claims about the quality and efficacy of the company’s dental alignment products.

“NBC must be held accountable for its abuse of power and betrayal of trust,” attorneys wrote in their initial claim. “Viewers and readers across the country turn to the media for the information they need to make decisions about their health and well-being.”

SmileDirectClub, notes The Hill, provided “tele-dental” services. Patients could order clear aligners online, and schedule regular consultations with dentists and orthodontists. If necessary, SmileDirectClub’s providers could also write referrals to in-person specialists.

Man in suit reading business newspaper; image by Adeolu Eletu, via Unsplash.com.
Man in suit reading business newspaper; image by Adeolu Eletu, via Unsplash.com.

“NBC misled its viewers and readers about the safety of the treatment that patients receive when using SDC’s platform, the very real involvement of licensed dentists and orthodontists in the treatment of patients using SDC’s platform, and the effectiveness of treatment that patients receive when they are treated,” the lawsuit alleged.

However, the complaint was dismissed in December 2021 under the recently-enacted Tennessee Public Participation Act, an expansion of the state’s “anti-SLAPP” statutes. SmileDirectClub appealed the ruling, with the case handed off to the Tennessee Court of Appeals.

Last Thursday, the appeals panel reached its decision: though SmileDirectClub had provided some evidence to show that NBC News made false statements, the company failed to meet the “actual malice” standard required for defamation claims against the media.

“Considering the evidence in a light most favorable to the plaintiffs and disregarding all countervailing evidence, we have determined that the plaintiffs presented prima facie evidence of falsity to support some of their claims but failed to produce clear and convincing evidence of actual malice,” the panel wrote. “Accordingly, we affirm the judgment of the trial court.”

The “actual malice” requirement states that media organizations are only liable for defamation if the plaintiff provides compelling evidence that the defendant knew, or should have known, that the information they were disseminating was likely false.

Before the lawsuit’s dismissal, NBC had long maintained that the complaint was baseless.

“We stand by our reporting,” a spokesperson said, “and believe this is a meritless claim.”

Sources

In win for Tennessee free speech law, SmileDirectClub loses appeal against NBC News

Invisalign maker reaches $27.5 million settlement of consumer antitrust lawsuit

NBC News Slapped With $2.85 Billion Lawsuit by SmileDirectClub

SmileDirectClub files $2.8B lawsuit against NBC



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