Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Central District of California on behalf of shareholders of Owlet, Inc. f/k/a Sandbridge Acquisition Corporation (NYSE: OWLT; OWLT WS; SBG; SBG WS), if they purchased the Company’s securities between March 31, 2021 and October 4, 2021, inclusive (the “Class Period”) and/or held Sandbridge common stock held as of June 1, 2021 and were eligible to vote at Sandbridge’s special meeting on July 14, 2021.
Owlet and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On October 4, 2021, the Company disclosed the receipt of a warning letter from the U.S. Food and Drug Administration (“FDA”) stating that “the Company’s marketing of its Owlet Smart Sock product . . . renders [it] a medical device requiring premarket clearance or approval from FDA,” which requirement the Company had not obtained, and also requesting that “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, shares of Owlet fell $1.29, or 23%, to close at $4.19 per share on October 4, 2021, on unusually heavy trading volume.
Shareholders have until January 18, 2022 to request that the court appoint them lead plaintiff.