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Owlet, Inc. Class Action Lawsuit - OWLT

Company Name
Owlet, Inc.
Stock Symbol
OWLT
Class Period
March 31, 2021 to October 4, 2021
Motion Deadline
January 16, 2022
Court
Central District of California
48 days left to seek lead plaintiff status

Case Summary

The Owlet class action lawsuit seeks to represent: (a) purchasers of Owlet, Inc. f/k/a Sandbridge Acquisition Corporation (NSYE: OWLT; OWLT WS; SBG; SBG WS) securities between March 31, 2021 and October 4, 2021, inclusive (the “Class Period”); and/or (b) holders of Sandbridge common stock as of June 1, 2021 that were eligible to vote at Sandbridge’s special meeting on July 14, 2021.  The Owlet class action lawsuit charges Owlet, certain of its top executives, and certain of Sandbridge’s directors with violations of the Securities Exchange Act of 1934.  The Owlet class action lawsuit was commenced on November 17, 2021 in the Central District of California and is captioned Butala v. Owlet, Inc. f/k/a Sandbridge Acquisition Corporation, No. 21-cv-09016.

If you wish to serve as lead plaintiff of the Owlet class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Owlet class action lawsuit must be filed with the court no later than January 18, 2022.

CASE ALLEGATIONS: Sandbridge was a special purpose acquisition company (“SPAC”) – also known a blank check company – formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.  On July 15, 2021, Sandbridge combined with Owlet Baby Care Inc., a company that designs and sells products and services for parents to proactively monitor the health and wellness of their children, and the combined company was renamed Owlet, Inc.  Owlet’s flagship product is called Smart Sock, 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.

The Owlet class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Owlet was reasonably likely to be required to obtain marketing authorization for the Smart Sock because the U.S. Food and Drug Administration (“FDA”) concluded it was a medical device; (ii) as a result, Owlet was reasonably likely to cease commercial distribution of the Smart Sock in the United States until it obtained the requisite approval; and (iii) consequently, defendants’ positive statements about Owlet’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On October 4, 2021, Owlet revealed that it had received a warning letter from the FDA, which asserted that Owlet’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 warning letter “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 price fell by approximately 23%, damaging investors.

Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance.  Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors.  The rise in blank check financing poses unique risks to investors.  Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Owlet securities during the Class Period and holders of Sandbridge common stock as of June 1, 2021 that were eligible to vote at Sandbridge’s special meeting on July 14, 2021 to seek appointment as lead plaintiff in the Owlet class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Owlet class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Owlet class action lawsuit.  An investor’s ability to share in any potential future recovery of the Owlet class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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