According to the Complaint, Owlet, Inc. (“Owlet” or the “Company”, f/k/a Sandbridge Acquisition Corporation) is a company that designs and sells products and services for parents to proactively monitor the health and wellness of their children. 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.

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. It completed its initial public offering (“IPO”) 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., and the combined company was renamed Owlet (the “Business Combination”).

The Complaint alleges that throughout the Class Period, Defendants 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, the Complaint alleges 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.

On September 29, 2022, the Court issued an Order consolidating cases. All future docketing was ordered to be done in the lead case 21-CV-09016.

On September 8, 2023, the Court issued an Order appointing Lead Plaintiff and Counsel for the Section 14(a) class as well as Lead Plaintiff and Counsel for the Section 10(b) class. Lead Plaintiff filed an amended Complaint on November 21. On December 22, Lead Plaintiff filed an amended consolidated Complaint. Defendants filed a Motion to Dismiss the amended consolidated Complaint on February 9, 2024.

On August 5, 2024, the Court issued an Order denying Defendants' Motion to Dismiss. Defendants filed a Motion for Reconsideration on the Dismissal Order on August 19, and on September 26, the Court issued an Order granting in part Defendants' Motion for Reconsideration.

On December 2, 2024, the parties notified the Court that they had reached an agreement-in-principle to settle the case. On January 31, 2025, the parties entered into a Stipulation and Agreement of Settlement.