Owlet investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than January 18, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Owlet, Inc. (“Owlet”) (NYSE: OWLT; OWLT WS) f/k/a Sandbridge Acquisition Corporation (“Sandbridge”) (NYSE: SBG; SBG WS) securities between March 31, 2021 and October 4, 2021, inclusive (the “Class Period”); and/or held Sandbridge common stock as of June 1, 2021 and were eligible to vote at Sandbridge’s special meeting on July 14, 2021.
Sandbridge was a special purpose acquisition 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. Sandbridge completed its initial public offering on or about September 14, 2020, selling 23 million units at $10.00 per unit. 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 (the “Business Combination”). Owlet’s 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.
The Class Period commences on March 31, 2021, when Owlet filed its registration statement on a Form S-1 in connection with the Business Combination. Throughout the Class Period, the defendants advised investors that Smart Sock was not a medical device.
The truth was revealed on October 4, 2021, when Owlet disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission that it had received a warning letter from the U.S. Food and Drug Administration (“FDA”), which stated that “[Owlet]’s marketing of its Owlet Smart Sock product . . . renders [it] a medical device requiring premarket clearance or approval from FDA.”
Following this news, Owlet’s stock price fell $1.29, or 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.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) 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) 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) as a result of the foregoing, the defendants’ positive statements about Owlet’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.