
There’s a new class action lawsuit being proposed against Oura’s parent company, Oura Health Oy, claiming that the sleep stages from the Oura Ring are generated by AI estimates instead of actual measurements.
Oura claims on its own product pages that it has “95% Sleep Staging Accuracy compared to a clinical sleep lab”, the complaint argues that a finger-worn device cannot substantiate that claim.
A polysomnography sleep study measures brain activity, eye movement, and muscle tone through electrodes, none of which a ring has, according to the argument. The filing’s language is not restrained either, describing Oura’s sleep stages as “AI-generated guesses” and roughly a “coin flip’s chance” of being right.
Oura rejects this characterization, saying that “we stand behind our science, research and accuracy claims.” The spokesperson also added that its sleep staging has been compared favorably against polysomnography in multiple studies.
This case carries seven counts, which include fraud by misrepresentation and breaches of California’s Unfair Competition Law and False Advertising Law. Alongside damages, it also asks for a corrective advertising injunction requiring prominent disclaimers.
The timing couldn’t be worse
For Oura, this is not great timing at all. The company has filed confidentially for a US initial public offering back in May, after reaching an $11 billion valuation that made it Europe’s most valuable consumer health hardware company. This isn’t going to help with their IPO when it does officially list on the stock market here in the US.
Europe will be heavily invested in this class action lawsuit, as Oura advertises this same metric about sleep scores to Europeans as well.
Oura has been on the other side of these lawsuits in the past, having sued a rival over its own patents, back in 2023. This is an interesting class action lawsuit that could have big changes in store for not just Oura but other smart rings too.
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