SmileDirectClub Settlement: Payout, Eligibility & Status

SmileDirectClub promised millions of Americans a cheaper, faster way to straighten their teeth without ever sitting in a dentist's chair. By the time the company collapsed into bankruptcy in late 2023, it had also become the subject of a major federal antitrust lawsuit accusing Invisalign maker Align Technology of striking a secret deal that kept aligner prices artificially high. That case, formally known as Snow v. Align Technology, Inc., ended in a $31.75 million cash settlement that received final court approval in November 2025.

This guide walks through what the lawsuit actually alleged, how the case moved through federal court, who qualifies for a payment, how much money class members can expect, and how this consumer settlement differs from SmileDirectClub's bankruptcy and from a separate $63 million arbitration dispute between Align and SmileDirectClub. The claims deadline has already passed, but understanding the settlement's current status is still useful for anyone who filed a claim, received a notice, or is simply trying to make sense of everything that happened to SmileDirectClub.

What Was SmileDirectClub?

SmileDirectClub launched in Nashville, Tennessee, in 2014 with a simple pitch: consumers could get a set of clear aligners to straighten mild-to-moderate teeth misalignment without visiting an orthodontist's office. Customers either used an at-home impression kit or visited a "SmileShop" often located inside retail partners such as Walmart or CVS to get a 3D scan of their teeth. A remote, licensed dental professional then reviewed the scan and approved a treatment plan, and the aligners were shipped directly to the customer's door.

The company grew quickly on the strength of this teledentistry model and went public on the Nasdaq in 2019, reaching a valuation of roughly $8.9 billion shortly after its IPO. But SmileDirectClub struggled to turn that growth into sustained profit. It faced years of pushback from organized dentistry and orthodontic groups over the safety of remote treatment, and it continued to post steep annual losses including an $86.4 million loss in 2022 alone. Those financial pressures eventually led to a bankruptcy filing and full shutdown, discussed later in this article.

Align Technology and the Invisalign Connection

Align Technology, based in Arizona, is the company behind Invisalign, the best-known clear aligner brand sold through licensed dentists and orthodontists. Align and SmileDirectClub were not always rivals. In 2016, Align purchased a 19% ownership stake in SmileDirectClub and became its exclusive third-party aligner supplier under a Supply Agreement between the two companies. For a period, Align effectively helped manufacture the aligners that SmileDirectClub sold directly to consumers.

That partnership did not last. The companies parted ways around 2019, and their relationship deteriorated into years of litigation on two separate tracks: a business dispute over the Supply Agreement (resolved through private arbitration, discussed below) and a consumer-facing federal antitrust lawsuit alleging that Align and SmileDirectClub had secretly agreed to divide up the clear aligner market rather than compete on price. It is this second dispute the consumer antitrust class action that produced the $31.75 million settlement at the center of this article.

How the Legal Dispute Originated

The consumer lawsuit, Snow v. Align Technology, Inc., was filed in the U.S. District Court for the Northern District of California and assigned to Judge Vince Chhabria. The named plaintiffs consumers who had purchased SmileDirectClub aligners alleged that Align and SmileDirectClub entered into an agreement that allocated the clear aligner market between them: Align would dominate the traditional, dentist-supervised segment through Invisalign, while SmileDirectClub would be left to operate in the direct-to-consumer channel without real competition from Align's own direct-to-consumer ambitions. Plaintiffs claimed this arrangement suppressed competition and caused more than a million U.S. consumers to pay inflated prices for SmileDirectClub aligners between October 22, 2017, and August 18, 2022.

It is important to separate what plaintiffs alleged from what was ever legally proven. The complaint asserted violations of both Section 1 of the Sherman Antitrust Act (unlawful agreements that restrain trade) and, in an earlier phase of the case, Section 2 (illegal monopolization). In February 2024, the court granted summary judgment in Align's favor on the Section 2 monopolization claim, meaning that particular theory did not go forward. The narrower Section 1 claim that Align and SmileDirectClub had an unlawful agreement survived and was the claim ultimately resolved by the $31.75 million settlement. At no point did a court or jury rule that Align actually violated the law; the case ended in a negotiated settlement instead of a trial verdict.

The Antitrust Class Action Explained

The Parties and the Claims

The case was brought as a class action on behalf of a broad group of U.S. consumers, represented by class representatives including Misty Snow, Dana Bozian, Mike Casad, and James Eaton, among others, and litigated by the law firms Hagens Berman Sobol Shapiro and Bartlit Beck. Align Technology, Inc. was the sole defendant; SmileDirectClub itself was not a defendant in this particular consumer case (SmileDirectClub's own bankruptcy proceedings are a separate matter, covered below).

The court certified the class in November 2023, which allowed the litigation to proceed as a single, consolidated case on behalf of all eligible purchasers rather than requiring each consumer to sue individually.

From a Rejected Coupon Settlement to an All-Cash Deal

The path to the final $31.75 million settlement was not straightforward. In 2024, the parties first proposed a $27.5 million settlement that combined a modest cash fund with a coupon program offering class members a $300 credit toward Invisalign treatment and a $50 credit toward an Align retainer. Judge Chhabria rejected that structure, not once but twice, expressing concern that funneling consumers back toward Align's own products was an odd remedy in a case accusing Align of anticompetitive conduct. As the judge put it in his ruling, a settlement that directs more customers toward an alleged monopolist raised serious fairness questions.

The parties went back to the negotiating table and returned with an amended, all-cash settlement of $31.75 million, with no coupons or product credits attached. Judge Chhabria granted preliminary approval to this revised settlement on May 28, 2025, allowing notice to go out to the class and the claims process to begin.

Why Align Agreed to Settle

Settling a lawsuit is a common and lawful way for companies to resolve litigation risk, and it is not the same thing as losing a case or admitting fault. Align Technology has consistently maintained that it did nothing wrong and has not admitted any liability as part of the settlement. Court filings and Align's own public statements describe the settlement as a way to avoid the cost, uncertainty, and distraction of continued litigation rather than as a concession that the underlying antitrust allegations were true. Under the settlement agreement, the court itself has not decided whether Align actually violated the law the case was resolved before that question was ever answered by a judge or jury.

Who Was Eligible for the Settlement

The settlement class was defined broadly to include:

• All persons in the United States
• Who purchased, paid for, and/or provided reimbursement for some or all of the purchase price
• Of SmileDirectClub aligners
• Acquired for personal use
• Between October 22, 2017, and August 18, 2022

This means the class covered direct purchasers as well as people who helped pay for someone else's treatment or were reimbursed (for example, through an employer benefit or insurance arrangement), as long as the aligners were for personal use rather than resale. Purchases made outside that specific date range, or aligners acquired for a business or commercial purpose rather than personal use, generally fell outside the class definition. It's worth noting that this lawsuit was strictly about pricing and competition it did not release any separate claims a consumer might have had regarding the quality of their aligners or problems with their treatment.

Consumers who were identified in SmileDirectClub's own business records as qualifying purchasers did not need to do anything extra; they were slated to receive an automatic, pro rata cash payment. Consumers who were not identified in those records for example, because they paid with cash, used a different name, or purchased through a third party needed to submit a claim form to be considered for payment.

How the Claim Process Worked (And Whether You Can Still File)

For class members who needed to file a claim rather than rely on an automatic payment, the process worked roughly as follows:

1. Visit the official settlement website, SDCAlignerSettlement.com, or use the Unique ID provided in a mailed or emailed notice, if one was received.
2. Complete the claim form online or by mail, providing basic identifying and purchase information.
3. Submit supporting documentation if requested acceptable proof generally included receipts, order confirmations, or bank or credit card statements showing a payment to SmileDirectClub during the class period.
4. Submit the claim before the deadline.

The deadline to submit a claim was October 27, 2025, and the deadline to opt out of the settlement or object to its terms was October 30, 2025. Both deadlines have now passed. As of this writing, in August 2026, the settlement website and administrator are no longer accepting new claims, and consumers who did not submit a timely claim and were not otherwise identified as automatic payees are not eligible to receive a payment from this particular settlement fund. Anyone who believes they qualified but missed the window can still contact the settlement administrator or class counsel to ask about their status, but late claims generally cannot be honored once a court-approved deadline has closed.

How Much Compensation Could Eligible Consumers Receive?

According to the official settlement website, eligible class members were estimated to receive a cash payment of roughly $40 to $60 per person, with a stated minimum payment of $10. These figures are estimates, not guarantees. Because the fund is distributed on a pro rata basis, the actual amount any individual receives depends on:

• The total number of valid claims ultimately submitted and approved
• The size of the settlement fund remaining after court-approved deductions
• Attorneys' fees (class counsel requested up to 25% of the settlement fund, plus reimbursement of litigation expenses)
• Service awards of $7,500 approved for each of the three class representatives
• Administrative costs of processing claims and distributing payments

Payments are being issued as cash rather than store credit or coupons, reportedly through options such as PayPal, Zelle, Venmo, or a paper check by mail, depending on what the claimant selected. Multiple settlement-tracking sources report that the administrator began issuing payments to eligible class members starting in March 2026, following the settlement's final approval. Individual results will vary, and no one should treat the $40–$60 estimate as a fixed or guaranteed amount.

Timeline of Key Events

• 2014 — SmileDirectClub is founded in Nashville, Tennessee.
• 2016 — Align Technology acquires a 19% stake in SmileDirectClub and becomes its exclusive third-party aligner supplier under a Supply Agreement.
• 2019 — SmileDirectClub goes public on the Nasdaq at a roughly $8.9 billion valuation; the Align–SmileDirectClub supply partnership subsequently unravels.
• October 22, 2017 – August 18, 2022 — The period covered by the antitrust settlement class.
• August 27, 2020 — Align initiates a separate, private arbitration against SmileDirectClub over alleged breaches of the 2016 Supply Agreement (unrelated to the consumer class action).
• 2021 — The consumer antitrust case, Snow v. Align Technology, Inc., is filed in the Northern District of California.
• October 27, 2022 — An arbitrator issues a $63 million interim award in Align's favor in the private Supply Agreement dispute.
• August 21–23, 2023 — A California state court confirms the $63 million arbitration award against SmileDirectClub; SmileDirectClub announces plans to appeal.
• September 2023 — SmileDirectClub files for Chapter 11 bankruptcy protection, citing nearly $900 million in debt.
• November 29, 2023 — The federal court certifies the antitrust class in Snow v. Align.
• December 8, 2023 — SmileDirectClub announces it is shutting down all global operations effective immediately.
• January 26, 2024 — SmileDirectClub's bankruptcy case converts from Chapter 11 to Chapter 7 liquidation.
• February 21, 2024 — The federal court grants summary judgment for Align on the Section 2 monopolization claim, narrowing the antitrust case to the Section 1 agreement claim.
• 2024 — Judge Chhabria twice rejects a proposed $27.5 million settlement that included Invisalign product coupons.
• May 28, 2025 — The court grants preliminary approval to a revised, all-cash $31.75 million settlement.
• June–July 2025 — Notice goes out to class members; the settlement claims portal opens to the public.
• October 27, 2025 — Deadline to submit a claim form.
• October 30, 2025 — Deadline to opt out of or object to the settlement.
• November 20, 2025 — Final approval hearing held before Judge Chhabria in San Francisco.
• November 21, 2025 — The court grants final approval to the $31.75 million settlement.
• March 2026 — The settlement administrator reportedly begins issuing payments to eligible class members.

Has the Court Approved the Settlement?

Yes. On November 21, 2025, U.S. District Judge Vince Chhabria granted final approval to the $31.75 million settlement following a fairness hearing held the previous day. Final approval also included the court's sign-off on class counsel's request for attorneys' fees and litigation expenses, as well as $7,500 service awards for each of the three class representatives.

Final approval means the settlement is legally binding on the class, subject to the outcome of any appeal. Practically speaking, it means:

• The court has determined that the settlement's terms are fair, reasonable, and adequate for the class as a whole.
• Class members who did not opt out are bound by the settlement and have released their antitrust claims against Align related to this dispute (while retaining any separate claims about product quality or their personal treatment).
• The settlement administrator can move forward with calculating and distributing payments to class members with valid, timely claims or automatic payment status.

Is the Lawsuit Still Active? What Should You Do If You Missed the Deadline?

The Snow v. Align Technology antitrust class action itself is effectively resolved: the case reached final judgment once the court granted final approval and entered judgment closing the matter. Barring a successful appeal that unwinds the settlement, there is no ongoing litigation on the underlying Section 1 antitrust claim, and no new claims can be filed against this settlement fund.

If you purchased SmileDirectClub aligners during the class period but never filed a claim and were not automatically identified as a purchaser, unfortunately the claims window has closed and this particular settlement fund is generally no longer accepting submissions. If you believe you were wrongly excluded, or you're unsure whether you were identified in SmileDirectClub's records, the settlement administrator (reachable through SDCAlignerSettlement.com or by phone) and class counsel remain points of contact, though there is no guarantee a late request will be honored. Consumers with unrelated concerns such as being billed after SmileDirectClub's 2023 shutdown, or issues connected to the company's bankruptcy should look at those separate processes rather than this antitrust settlement, since eligibility, deadlines, and administrators differ.

Not the Same Thing: Bankruptcy, Arbitration, and the Antitrust Settlement

It's easy to conflate several different SmileDirectClub-related legal stories, but they are distinct matters with different parties, purposes, and outcomes.

SmileDirectClub's bankruptcy. In September 2023, SmileDirectClub filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, reporting nearly $900 million in debt. After failing to find a buyer or investor willing to keep the company running, SmileDirectClub abruptly shut down all operations on December 8, 2023, canceling unshipped orders and ending its "Lifetime Smile Guarantee." The case later converted to Chapter 7 liquidation in January 2024, and the company's assets and technology were eventually acquired by a successor company. This bankruptcy proceeding is about SmileDirectClub's own insolvency and how its remaining assets were distributed to creditors it is separate from, and not a party defendant in, the Align antitrust class action. (Separately, some consumers who were improperly billed after the shutdown obtained refunds through state consumer-protection enforcement, such as a New York Attorney General action that recovered roughly $4.8 million for affected consumers another distinct process from the Align settlement.)

The $63 million Align-SmileDirectClub arbitration. This was a private, confidential arbitration between Align and SmileDirectClub not a consumer lawsuit arising from the 2016 Supply Agreement between the two companies. Align alleged SmileDirectClub breached that agreement; an arbitrator agreed, awarding Align $63 million, the maximum available under the agreement's liability cap. A California state court confirmed that award in August 2023, and SmileDirectClub announced plans to appeal. This dispute is a business-to-business contract fight over a supply arrangement that ended years earlier it has nothing to do with the pricing allegations in the consumer antitrust class action and does not affect consumer eligibility or payments under the $31.75 million settlement.

The $31.75 million antitrust settlement. This is the consumer class action discussed throughout this article Snow v. Align Technology, Inc. which resolved allegations that Align's arrangement with SmileDirectClub suppressed competition and inflated prices for aligners purchased between 2017 and 2022. It is the only one of these three matters that provides direct cash compensation to everyday consumers who purchased SmileDirectClub aligners.

Frequently Asked Questions

Who was eligible for the SmileDirectClub/Align settlement?

Anyone in the U.S. who purchased, paid for, or reimbursed some or all of the cost of SmileDirectClub aligners for personal use between October 22, 2017, and August 18, 2022.

How much money can class members get?

Estimates from the official settlement website put payments at roughly $40 to $60 per eligible claimant, with a minimum of $10. Actual amounts depend on the number of valid claims filed and are not guaranteed to match the estimate.

What was the claim deadline, and can I still file?

The claim deadline was October 27, 2025, and it has passed. New claims generally cannot be accepted at this point.

Is the SmileDirectClub lawsuit still active?

The consumer antitrust case reached final settlement approval on November 21, 2025, and the case is effectively resolved unless an appeal changes that outcome. It is separate from SmileDirectClub's now-closed bankruptcy case and from the unrelated $63 million Align-SmileDirectClub arbitration.

Did Align admit wrongdoing?

No. Align has consistently denied any wrongdoing and settled to resolve the litigation without any court ruling on whether it actually violated antitrust law.

When will payments arrive?

Reports indicate the settlement administrator began distributing payments to eligible class members starting in March 2026, following final court approval in late 2025. Class members with questions about a specific payment should contact the settlement administrator directly.