NEW YORK, December 14, 2021 / PRNewswire / – Pomerantz LLP Announces that a Class Action has been filed against Owlet, Inc. (âOwletâ or the âCompanyâ) f / k / a Sandbridge Acquisition Corporation (âSandbridgeâ) (NYSE: OWLT; OWLT WS; SBG) and some of its leaders. The class action, filed in United States District Court of the Central District of California, and listed under 21-cv-09293 is in the name of a class consisting of all persons and entities other than the Defendants: (a) who have purchased or otherwise acquired Owlet securities between March 31, 2021 and October 4, 2021, inclusive (the âRecourse Periodâ); and / or (b) held common shares of Sandbridge held in June 1, 2021 and were entitled to vote at the Special Meeting of Sandbridge on July 14, 2021. The plaintiff is pursuing actions against the defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Owlet securities during the Class Period or held common shares of Sandbridge during the Class June 1, 2021 and were entitled to vote at the Special Meeting of Sandbridge on July 14, 2021, you have up to January 18, 2022 ask the court to appoint you as the principal plaintiff for the group. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [emailÂ protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
Sandbridge was a special purpose acquisition company incorporated for the purpose of effecting a merger, stock exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more companies.
At July 15, 2021, Sandbridge has partnered with Owlet Baby Care Inc., a company that designs and sells products and services for parents to proactively monitor the health and well-being of their children, and the combined company has has been renamed Owlet (the âBusiness Combinationâ).
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 patterns in real time using the Owlet application.
The complaint alleges that, throughout the Class Period, the Defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and prospects of the Company. Specifically, the defendants failed to disclose to investors: (1) that Owlet was reasonably likely to be required to obtain marketing authorization for Smart Sock because the United States Food and Drug Administration (âFDAâ) concluded that it was a medical device; (2) that, as a result, Owlet was reasonably likely to cease commercial distribution of the Smart Sock in the United States until it obtained the required approval; and (3) that as a result of the foregoing, the Defendants’ positive statements regarding the business, operations and prospects of the Company were materially misleading and / or lacked reasonable basis.
At October 4, 2021, Owlet revealed that she had received a warning letter from the FDA that stated that “the company’s marketing of its product Owlet Smart Sock … makes [it] a medical device requiring pre-market authorization or FDA approval. “Owlet has not obtained such authorization or approval. Further, the FDA” requests the Company to cease commercial distribution of the Smart Sock for use in measuring blood oxygen saturation and pulse rate when such measurements are intended to identify or diagnose desaturation and bradycardia using an alarm feature to notify users that the measurements are outside the predefined values. “
On this news, Owlet’s stock price fell $ 1.29, or 23%, to close at $ 4.19 per share on October 4, 2021, on an unusually high volume of transactions. Therefore, the Sandbridge investors who could have voted against the business combination and repurchased their shares at $ 10.00 per share suffered a loss of $ 5.81 per share.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is recognized as one of the leading firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class actions bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext 7980
SOURCE Pomerantz LLP