- The stock price of SmileDirectClub Inc (NASDAQ: SDC) fell from $10.63 to $8.46 during intraday trading this morning. This is why it happened.
The stock price of SmileDirectClub Inc (NASDAQ: SDC) fell from $10.63 to $8.46 (down 20.41%) during intraday trading this morning. Investors are responding negatively to a Form 8-K filing from the company announcing it experienced a systems outage caused by a cybersecurity incident.
“On May 3, 2021, SmileDirectClub, Inc. (the ‘Company’) announced that it experienced a systems outage that was caused by a cybersecurity incident on April 14, 2021 (the ‘Incident’). The Company promptly implemented a series of containment and remediation measures to address the Incident, including temporarily isolating and shutting down affected systems and related manufacturing operations. The Company immediately mobilized its internal engineering security team and has engaged leading forensic information technology firms to assist the Company’s investigation into the Incident. As a result of these efforts, the Company was able to successfully block the attack, no ransom was paid, and the Company’s systems and operations are back online and performing normally,” wrote the company in the filing.
Since that time, SmileDirectClub said that it is actively managing the incident and it is in consultation with third-party advisors to seek to understand and quantify the impact on the company. And SmileDirectClub said that it is not aware of any data loss from, or other loss of assets as a result of, the incident, including any exposure of customer or team member information.
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