Osom, the Essential Spin-Off Smartphone Company, Faces a Lawsuit

What the lawsuit claimed

The former officer asked a Delaware court to let them see Osom’s financial and accounting records. The suit alleged that company money was spent on personal items, and that a former finance chief left because of disagreement with how funds were managed. It also said a possible sale to HP did not go through, with the price falling along the way, and that the company’s cash was nearly gone.

Osom’s response

A company spokesperson said the allegations were false and that Osom would prove them wrong in court. None of the claims had been proven when the report was written, and the final outcome is not known from this source.

Business problems

The report also said the company was closing and that most staff would lose their jobs. It had wanted to build privacy-focused devices but struggled to find a market, and it cancelled a new device because of money problems.

A short history

• Essential, the earlier startup, made the Essential Phone, a modular phone with a magnetic connector on the back for add-ons.
• The phone did not sell well, partly because of a $700 price that did not include modules.
• Essential later showed the PH-2 concept with a narrow, remote-like screen, which was never made in large numbers.
• After Essential failed, former staff founded Osom Products in Canada.
• Its first planned phone was a security-focused model, the OV1, which was later renamed the Saga and tied to the Solana blockchain. It was aimed at cryptocurrency fans and cost $650 plus a $100 deposit for pre-orders.