US Court Confirms $63 Mln Arbitration Award In Favor Of Align Tech & Denies SmileDirectClub's Motion

(RTTNews) - Align Technology Inc. (ALGN) said that the Superior Court, State of California, County of Santa Clara issued an order granting Align's petition to confirm and denying SmileDirectClub LLC petition to vacate a $63 million arbitration award entered in favor of Align.

In August, 2020, Align initiated a confidential arbitration proceeding against SmileDirectClub before the American Arbitration Association relating to a Supply Agreement entered into between the parties in 2016. Align's complaint alleged that SmileDirectClub breached the Supply Agreement's terms, causing damages to Align.

In January, 2021, SmileDirectClub filed a counterclaim alleging that Align breached the Supply Agreement and on May 3, 2022, SmileDirectClub filed an additional counterclaim alleging that Align breached the Supply Agreement.

In October, 2022, the arbitrator issued an interim award on Align's claims and SmileDirectClub's first counterclaim finding that SmileDirectClub breached the Supply Agreement, and that Align did not breach the Supply Agreement. The arbitrator awarded Align an interim award in the amount of $63 million, the maximum under the Supply Agreement's liability cap.