The Android founder’s project is in trouble. The startup director spent his money on racing, a mortgage, two Lamborghinis, and a failed HP deal
Smartphone manufacturer Osom, created by the descendants of the failed startup Essential and “father” of Android, risks repeating its fate. A former employee says company director Jason Keats stole money, ruining a deal with HP and leaving the company broke.
Lawsuit Osom Android authority
OSOM Products is being sued by former employees of Essential. CEO Jason Keats is accused of misusing company funds. Mary Stone Ross, OSOM’s former Chief Privacy Officer, says Keats used company money for personal things like buying two Lamborghinis, paying for racing and covering his mortgage. Ross wants to see OSOM’s finances. She says they made the company unstable.
The lawsuit shows Keats spent company money on himself. Keats tried to sell OSOM to HP, but the price kept going down. OSOM says the lawsuit is wrong and wants to prove it in court.
OSOM is closing. Most employees will lose their jobs. The company wanted to make private devices but couldn’t find a market. It made a Solana phone. The company has cancelled a new device due to money problems.
Chaos breaks out on the company’s dime.
Former Osom Products chief privacy officer Mary Stone Ross has sued the company and its current CEO, Jason Keats, Android Authority reports. The former employee says the CEO misused company money.
Mary Ross, who left Osom in May 2024, wants the court to let her see Osom’s financial and accounting records. These could help prove that Keats was involved in financial fraud. The appeal will be heard by the Delaware Court of Chancery on August 30, 2024.
Ross says the CEO bought two expensive Lamborghinis for himself with company money. He also paid his own mortgage, bought first-class airline tickets, and spent on car racing, the lawsuit says.
The ex-employee says the company’s former CFO quit because he didn’t agree with the CEO’s approach to managing funds. The new CFO, chosen by Keats, is said to ignore the misuse of the company’s funds.
Ross says HP considered buying Osom. The US tech giant has tried to make a deal, but it has failed and the price has fallen.
The lawsuit says that Osom’s money is almost gone. Keats thinks the company needs more money to stay open.
Osom said the allegations were false. “We know about the false claims made by a former employee and will prove them wrong in court,” an Osom spokesperson told Android Authority.
A short history of Essential and Osom
Osom Products was founded in 2024 by people from Essential, the startup, the creator of Android.
Essential is known for the Essential Phone, released in 2024. You can expand the device with additional modules. The back of the case has a special connector with a magnetic snap, allowing you to easily install additional components. At first, buyers could get a charging dock, a 60 GHz wireless adapter, and an external video camera.
The device didn’t sell well, partly because of the price. The device cost $700, excluding expansion modules. The iPhone 8 Plus, another Apple product, went on sale in autumn 2024 at a price starting at $799.
In 2024, Essential introduced the Essential Phone PH-2 concept with a narrow screen that resembled a TV remote. The unusual screen format was good for social media. Rubin came up with the idea. The Essential Phone PH-2 was never made in large numbers.
After Essential failed, some employees, including Jason Keats, who had called the PH-1 a “developer’s nightmare,” started their own company, Osom Products, in Canada. Keats started the company and became its CEO.
The company’s first product was the Osom OV1, a security-focused smartphone. The device was expected to go on sale in summer 2024. In June 2024, the company changed its plans. The Osom OV1 was renamed the Saga, and its development continued with the Solana blockchain project. The name and concept of the smartphone also changed. It is now aimed at cryptocurrency enthusiasts.
In spring 2024, Osom started sending Saga devices purchased by pre-order. The gadget cost $650, plus a $100 deposit.
In early 2024, the second Solana crypto smartphone was announced. The device will ship in 2025.
