NURLYBAYEV v. SMILEDIRECTCLUB, INC.

Index No. 652603/20. Appeal No. 15793. Case No. 2022-00298.

205 A.D.3d 455 (2022)

169 N.Y.S.3d 24

2022 NY Slip Op 03053

Rustem Nurlybayev, Appellant, v. SmileDirectClub, Inc., et al., Respondents.

Appellate Division of the Supreme Court of New York, First Department.

Decided May 5, 2022.


Attorney(s) appearing for the Case

Bragar Eagel & Squire, P.C., New York (Melissa A. Fortunato of counsel), for appellant.

Skadden, Arps, Slate, Meagher & Flom LLP, New York (Scott D. Musoff of counsel), for SmileDirectClub, Inc., David Katzman, Steven Katzman, Kyle Wailes, Jordan Katzman, Alexander Fenkell, Richard Schnall, Susan Greenspon, Rammelt, Richard F. Wallman, Carol Hamilton and Camelot Venture Group, respondents.

Sullivan & Cromwell LLP, New York (Sharon L. Nelles of counsel), for J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BOFA Securities, Inc., Jefferies LLC, UBS Securities LLC, Credit Suisse Securities (USA) LLC, GuggenheimSecurities, LLC, Stifel, Nicolaus & Company, Incorporated, William Blair & Company, L.L.C. and Loop Capital Markets LLC, respondents.

Concur—Renwick, J.P., Kapnick, Gesmer, Moulton, Shulman, JJ.


On June 19, 2020, plaintiff brought this securities class action on behalf of all persons and entities who acquired Class A common stock of defendant SmileDirectClub, Inc. (SDC) in accordance with the offering documents issued in connection with SDC's initial public offering on September 12, 2019. The complaint alleged violations of sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (15 USC §§ 77k, 77l, 77o). There are four consolidated Securities...

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