Investigations

GRABAR LAW OFFICE INVESTIGATES CLAIMS ON BEHALF OF INVESTORS OF OWLET, INC. (NYSE: OWLT)

Owlet, Inc. (NYSE: OWLT) sells its flagship product is called Smart Sock, which is a baby monitor that allows parents to track an infant’s oxygen levels, heart rate, and sleep trends in real time using the Owlet application.

On October 4, 2021, Owlet revealed that it had received a warning letter from the U.S. Food and Drug Administration (“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 FDA.” Owlet has not obtained such clearance or approval. Moreover, 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.

It is alleged that Owlet, via certain of its officers and directors, made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Owlet was reasonably likely to be required to obtain marketing authorization for the Smart Sock because the FDA concluded it was a medical device; (2) that, as a result, Owlet was reasonably likely to cease commercial distribution of the Smart Sock in the U.S. until it obtained the requisite approval; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Current Owlet shareholders who have held Owlet stock since on or shortly after July 15, 2021, or via Sandbridge Acquisition Corporation (NYSE: SBG), can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award at no cost to them whatsoever.

If you would like to learn more about this matter, you are encouraged to contact us at jgrabar@grabarlaw.com, or call 267-507-6085.

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