A California federal judge has granted final approval to a $31.75 million antitrust settlement between Align Technology, Inc., the maker of Invisalign, and consumers who purchased SmileDirectClub aligners. This decision follows the court’s earlier rejection of a $27.5 million settlement that included a coupon program, which was deemed inadequate.
The class-action lawsuit alleged that Align Technology engaged in anticompetitive practices by entering into an agreement with SmileDirectClub to suppress competition in the direct-to-consumer aligner market, leading to inflated prices for consumers. Align denied these allegations but agreed to the settlement to resolve the claims.
Under the terms of the settlement, eligible consumers who purchased SmileDirectClub aligners between October 22, 2017, and August 18, 2022, are entitled to cash payments. Those identified in SmileDirectClub’s records will receive automatic pro rata payments, while others may file a claim form. Each claimant is estimated to receive between $40 and $60, but not less than $10. The deadline for submitting claims was October 27, 2025.
Align Technology had previously accrued a total loss of $31.75 million for the settlement, consisting of $27.5 million as of December 31, 2024, and an additional $4.25 million in the first quarter of 2025. The company issued the full settlement amount to an escrow agency in accordance with the court’s preliminary approval.
This settlement is part of a series of legal challenges faced by Align Technology. In April 2024, the company filed a lawsuit against ClearCorrect Operating, LLC, ClearCorrect Holdings, Inc., and Institut Straumann AG, alleging false advertising, unfair competition, civil conspiracy, and patent infringement related to aligner material, treatment planning, and intraoral scanner technologies. The defendants have filed counterclaims alleging antitrust violations, false advertising, unfair competition, and breach of contract. A trial is scheduled for May 11, 2026.
Align Technology continues to assert that the antitrust claims are without merit and remains prepared to defend itself against these allegations.