(Bloomberg) -- SmileDirectClub Inc. plunged as much as 13% after a tweet from short-seller Hindenburg Research said that the company admitted in a “newly filed lawsuit that its SmileShops were raided ‘state-wide’ by the Dental Board of California.”

The company did not immediately respond to an email asking for comment on Thursday. It’s not the first time Hindenburg has targeted the stock. On Oct. 4, the firm issued a new short report that said state regulators and medical organizations were cracking down on SmileDirectClub’s practices. Hindenburg set a price target on the stock of $2.

The shares have fallen 60% since ​​​​​​they began trading on Sept. 12 after an initial public offering at $23 each.

To contact the reporter on this story: Janet Freund in New York at jfreund11@bloomberg.net

To contact the editor responsible for this story: Catherine Larkin at clarkin4@bloomberg.net

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