A landmark $31.75 million settlement has been reached against Align Technology Inc., the maker of Invisalign, over allegations of price-fixing in the direct-to-consumer aligner market.
The lawsuit, formally known as Snow v. Align Technology Inc., centers on claims that Align Technology and SmileDirectClub engaged in anticompetitive conduct that artificially inflated prices for SmileDirectClub aligners.
U.S. District Judge Vince Chhabria granted preliminary approval to the settlement on May 28, 2025, setting the stage for eligible class members to receive compensation.
Understanding the Price-Fixing Allegations Against Align Technology
In 2016, Align Technology traditionally sold Invisalign products exclusively through dental offices, but was facing a competitive threat from SmileDirectClub's innovative direct-to-consumer sales model.
According to court documents, rather than compete fairly in the marketplace, Align allegedly entered into an anticompetitive agreement with SmileDirectClub LLC that created distinct market territories.
Align promised not to compete in the direct-to-consumer aligners segment, while SmileDirectClub would not encroach on the traditional dental office market. This arrangement effectively eliminated competition between two of the industry's most prominent players.
As part of this deal, Align Technology received a 17% ownership stake in SmileDirectClub, allowing the Invisalign maker to profit from the company it agreed not to compete against.
This profit-sharing arrangement meant that even as consumers paid artificially high prices for SmileDirectClub aligners, Align benefited financially from the lack of competition.
The agreement's effectiveness became clear in 2017 when Align attempted to enter the direct-to-consumer market by opening physical stores.
SmileDirectClub immediately initiated arbitration, resulting in a 2018 ruling that forced Align to close its stores and extended its non-compete provisions until August 18, 2022.
This enforcement action demonstrated how seriously both companies invested in their market distribution scheme.
Why These Market Competition Issues Matter
Before the alleged anticompetitive conduct, the clear aligner market showed promise for increased competition and lower prices.
SmileDirectClub's direct-to-consumer model offered aligners at significantly lower costs than traditional Invisalign treatment through dental offices.
This price differential attracted millions of consumers seeking affordable teeth straightening solutions.
Class plaintiffs say the alleged price fixing between Align Technology and SmileDirectClub effectively eliminated this competitive pressure.
Industry reports from the lawsuit also estimated that without the threat of Invisalign entering the direct-to-consumer market, real competition could have reduced aligner prices by 20-30%.
Who Qualifies for the SmileDirectClub Lawsuit Settlement?
The settlement class includes many shoppers who purchased SmileDirectClub aligners during the covered period.
Consumers are eligible if they meet the following specific criteria:
- A U.S. resident who purchased, paid for, or provided reimbursement for SmileDirectClub aligners.
- Aligners were acquired for personal use (not for resale).
- Purchase occurred between October 22, 2017, and August 18, 2022.
- Buyers haven't excluded themselves from the settlement class.
The definition of "purchaser" extends beyond just the person who used the aligners. If you paid for SmileDirectClub aligners on behalf of a family member, such as a spouse or child, you're considered an eligible class member.
Similarly, if you reimbursed someone else for their purchase – perhaps as an employer providing dental benefits or a parent helping an adult child – you qualify for the settlement benefits.
Several groups cannot participate in this class action settlement, including employees of Class Counsel, officers and directors of Align Technology, federal or state entities, and court staff.
The settlement class will also exclude anyone who properly opts out by the October 30, 2025, deadline. Visit the settlement website for full information on whether you may qualify.
Settlement Compensation Structure and Payment Amounts
The $31.75 million settlement fund will provide direct cash payments to eligible class members, each receiving an equal pro rata share.
Current estimates place individual payments between $40 and $60, though the final amount depends on how many valid claims are submitted.
Settlement fund allocation will follow a structured distribution plan:
- $2.5 million for settlement administration costs
- Up to $7,937,500 for attorneys' fees (25% of the settlement fund)
- Up to $7,500 for each class representative as service awards.
- Additional amounts for attorneys' expenses (subject to court approval).
- Remaining funds distributed equally among eligible class members.
Once the claims deadline passes, the settlement administrator will process all valid submissions and determine final payment amounts, expected in early 2026.
Automatic Payments vs. Filing a Settlement Claim
One unique aspect of this SmileDirectClub class action settlement involves the automatic payment process. Many eligible class members won't need to take any action to receive their pro rata cash payment.
SmileDirectClub's business records have identified numerous purchasers who will automatically receive settlement benefits once the court grants final approval.
However, not everyone appears in SmileDirectClub's records. Settlement officials may not automatically identify consumers who paid cash, used a different name, or purchased through third-party payment systems.
In these cases, such class members must file a timely and valid claim form to receive their settlement payment.
How to Submit Your Claim for the Dental Settlement
Filing your claim for this orthodontic treatment settlement involves a straightforward process.
- Visit SDCAlignersSettlement.com.
- Click on "File a Claim."
- Enter your personal information and SmileDirectClub purchase details.
- Upload supporting documentation (receipts, statements, or order confirmations).
- Select your preferred payment method.
- Review and submit your claim form.
For those who prefer traditional mail, download the claim form from the settlement website or request one by calling 1-888-788-8304.
Complete all required fields and mail your form with supporting documents to:
Snow v. Align Class Action Settlement Administrator
PO Box 2830
Portland, OR
97208-2830
Payment options
Payment options for your settlement include modern digital platforms and traditional methods:
- Venmo
- PayPal
- Zelle
- Paper check mailed to your address
After properly recording your participation, the settlement administrator will confirm your claim submission.
Your Rights as a Settlement Class Member
As a member of this class action lawsuit, you possess several consequential rights that affect your legal standing and potential compensation.
By taking no action or filing a claim, you'll be bound by the settlement terms and release all related claims against Align Technology and associated parties. This inaction means you cannot pursue individual litigation regarding the alleged anticompetitive conduct or price manipulation of SmileDirectClub products during the class period.
You may exclude yourself from the settlement by October 30, 2025, preserving your right to pursue individual legal action. Submit your exclusion request online at SDCAlignersSettlement.com or mail a written request including your name, address, and a clear statement of your intent to opt out. Settlement officials will not accept mass opt-outs or requests filed by third parties.
If you believe the settlement terms are unfair or inadequate, you may object by October 30, 2025.
Written objections must include:
- Your full contact information
- Specific grounds for objection with supporting evidence
- Whether you plan to appear at the final approval hearing
- Any history of objecting to other class action settlements
The released claims encompass all federal and state law claims against Align Technology and include any claims based on agreements between Align and SmileDirectClub that affected pricing or competition in the aligner market.
Visit the settlement website or consult with legal counsel to understand the implications of participating in, objecting to, or opting out of the settlement.
Fair Competition Benefits Every Dental Patient
For the estimated 1.45 million consumers who purchased SmileDirectClub aligners during the class period, this settlement provides tangible recognition that they paid inflated prices due to suppressed competition.
Align Technology's multi-million dollar settlement payment acknowledges the harm caused by its alleged anticompetitive agreement and serves as a reminder that consumer protection and fair competition must remain priorities in healthcare innovation.
Frequently Asked Questions (FAQ)
You can participate if you're a U.S. resident who purchased, paid for, or provided reimbursement for SmileDirectClub aligners for personal use between October 22, 2017, and August 18, 2022. This situation includes parents who paid for their children's aligners or employers who reimbursed employees for orthodontic treatment. Check if you're already identified in SmileDirectClub's records by calling 1-888-788-8304 or visiting SDCAlignersSettlement.com.
While receipts are helpful, they're not the only acceptable proof of purchase for your settlement claim. You can submit credit card statements, bank records showing the transaction, email confirmations from SmileDirectClub, or even insurance reimbursement documents that show you paid for aligners during the eligible period. The settlement administrator will review various forms of documentation to verify your claim.
Accepting the settlement payment only releases claims against Align Technology related to the alleged anticompetitive conduct in this lawsuit. It does not affect your rights to pursue other claims, such as those associated with SmileDirectClub's bankruptcy, product defects, or personal injuries from aligner treatment. The release specifically covers price-fixing and market allocation claims from October 2017 to August 2022.
The lawsuit alleges that Align Technology (maker of Invisalign) entered into an illegal agreement with SmileDirectClub to divide the aligner market, which resulted in consumers paying artificially high prices. While SmileDirectClub sold the aligners, Align allegedly facilitated the price inflation through its anticompetitive agreement and profited from it through its 17% ownership stake in SmileDirectClub.
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