Suit says rings cannot measure sleep; company stands behind science
Oura, the maker of health-tracking smart rings, faces a class-action lawsuit accusing the company of false advertising by claiming its rings can accurately track a person’s sleep activity and patterns. The suit, filed by the Clarkson Law Firm in August, claims: “Oura rings cannot measure one’s sleep or cycles. That’s because sleep happens in the brain, not on one’s finger.”
In a statement, a spokesperson for Oura said: “We stand behind our science, research and accuracy claims,” adding that “like other consumer sleep wearables, Oura Ring estimates sleep stages using multiple physiological signals, including heart rate, heart rate variability, movement, breathing patterns, and temperature.”
It is understood that Oura’s decision to delay an initial public offering is not connected to the lawsuit.
Postponed IPO and broader market backdrop
Separately, Oura continues to delay a US stock market listing that would have valued the company at $15 billion (£11.3 billion), citing “uncertainty in the Initial Public Offering (IPO) market” and did not say when it might go ahead. The company had filed official documents setting out plans to raise up to $2.2 billion by offering shares at between $40 and $44 on the Nasdaq stock market index.
Oura’s chief executive Tom Hale said “an IPO is just one step in our journey,” adding that “we have the luxury of choosing our moment.”
In its last full financial year, ending 30 September 2025, Oura made a pre-tax profit of $23.5 million on sales of $907.8 million, compared with a $6.2 million pre-tax profit in the previous year. Its most recent figures for the nine months to 30 June 2026 show pre-tax income of $70 million on sales of $1.2 billion.
Earlier this month, US nuclear technology firm Holtec International also postponed its flotation, blaming an “unusual confluence of developments that has impaired investor confidence in the market for new public offerings.” In particular, Holtec cited rising energy costs, military conflicts, global trade tensions and concerns about inflation that have led central banks including the US Federal Reserve to raise benchmark interest rates.
This week, the yield on US debt repayable in 10 years’ time hit the highest level since 2007.
Samuel Kerr, global head of equity capital markets at Mergermarket, said: “What is now clear is we are in a very different IPO market to the one we envisaged just a few weeks ago.”
Oura, founded in Finland in 2013, has its global headquarters in San Francisco and makes smart rings — costing upwards of $300 — which monitor heartbeat and sleep patterns through a companion app.