Owlet Inc. (OWLT) Misled Investors Regarding its Business Prospects
A class action was filed on behalf of all persons and entities that purchased Owlet, Inc. f/k/a Sandbridge Acquisition Corporation (NYSE: OWLT) securities between March 31, 2021 and October 4, 2021, or held Sandbridge common stock as of June 1, 2021, and were eligible to vote at Sandbridge’s special meeting on July 14, 2021. The complaint alleges violations of the Securities Exchange Act of 1934.
According to the complaint, on July 15, 2021, Sandbridge combined with Owlet Baby Care Inc. (the “Business Combination”). Owlet designs and sells products and services for parents to proactively monitor the health and wellness of their children. Owlet’s flagship product is Smart Sock – a baby monitor that allows parents to track an infant’s oxygen levels, heart rate, and sleep trends in real time.
On October 4, 2021, Owlet revealed it had received a warning letter from the FDA, which stated that “the Company’s marketing of its Owlet Smart Sock product … renders [it] a medical device requiring premarket clearance or approval from the FDA.” Owlet has not obtained the necessary clearance or approval. The FDA “requests the Company cease commercial distribution of the Smart Sock for uses in measuring blood oxygen saturation and pulse rate where such metrics are intended to identify or diagnose desaturation and bradycardia using an alarm functionality to notify users that measurements are outside of preset values.” On this news, Owlet’s stock fell 23%, to close at $4.19 per share on October 4, 2021. As a result, Sandbridge investors who could have voted against the Business Combination and redeemed their shares at $10.00 per share suffered a loss of $5.81 per share. Owlet has since ceased distribution of Smart Sock in the U.S. The Company’s stock now trades below $4.00.
If you purchased Owlet Inc. (OWLT) securities between March 31, 2021 and October 4, 2021, or held Sandbridge common stock as of June 1, 2021 and were eligible to vote at Sandbridge’s special meeting on July 14, 2021, you have until January 18, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.