A Lawsuit Challenges Oura’s Sleep Tracking Claims
A proposed class action alleges that Oura’s sleep staging is generated by AI estimates rather than accurate measurement. The lawsuit, filed in San Francisco, challenges the company’s claims of 95% sleep staging accuracy compared to clinical sleep labs, arguing that a finger-worn ring cannot achieve such precision.
Oura has faced criticism for its sleep tracking technology, with the lawsuit describing its estimates as "AI-generated guesses" with "a coin flip’s chance" of being correct.
The lawsuit cites research showing lower accuracy rates for Oura’s sleep stage classification, with an average error of 31.56 minutes in REM sleep.
Oura, however, defends its technology, stating:
- "We stand behind our science, research, and accuracy claims."
The case includes seven counts, including fraud by misrepresentation and breaches of California’s Unfair Competition Law and False Advertising Law. Plaintiffs seek damages and an injunction requiring Oura to provide disclaimers about its sleep tracking capabilities.
The timing of the lawsuit is notable, as Oura is preparing for a US initial public offering (IPO) valued at $11 billion.
Oura faces potential repercussions not only in the US but also in Europe, where the same accuracy claim is marketed to consumers and regulations prohibit misleading statements about product performance.