Why Shares of SmileDirectClub Were Down Today
Shares of SmileDirectClub (NASDAQ: SDC) traded down more than 12% on Thursday afternoon before recovering somewhat, after a short-seller tweeted that the direct-to-consumer dentistry company had been "raided" by California regulators. Full details of these alleged raids are uncertain, but it was enough to send investors running for the exits.
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SmileDirectClub, which went public last month, was already facing concerns about the company's growth outlook and questions about its teledentistry approach. On Thursday, short-seller Hindenburg Research added to those concerns when it tweeted that SmileDirectClub failed to disclose to investors that its stores in California had been raided as part of an investigation.
Source Fool.com
