Major Smartphone Company Shuts Down After CEO's Unbelievable Spending Scandal

This smartphone company is shutting down after CEO spent its ..

OSOM Products, the smartphone company that rose from the ashes of Andy Rubin's Essential, is reportedly on the verge of shutting down, and the reason behind it has taken many by surprise. Allegations of financial misconduct involving the company's CEO have surfaced, casting a shadow over its future.

According to Android Authority, OSOM's CEO, Jason Keats, broke the news to employees internally, revealing that the company’s closure is imminent. By the end of this week, most employees are expected to be laid off, leaving behind only a small team to roll out a final software update for the Solana Saga smartphone. 

The company’s downfall seems to stem from a lawsuit filed by Mary Stone Ross, OSOM’s former Chief Privacy Officer. She claims that Keats misused company funds, indulging in extravagant personal purchases like two Lamborghinis and even financing his racing hobby. The lawsuit, filed in Delaware's Court of Chancery, seeks access to OSOM's financial records to back these accusations.

Further reports suggest Keats didn’t stop at sports cars. His lavish spending allegedly included first-class travel and mortgage payments, which quickly drained the company’s resources. What started as a promising venture aiming to create privacy-first devices took a sharp turn when OSOM decided to pivot towards blockchain technology, partnering with Solana to release the Saga smartphone. However, plans for a follow-up device fizzled out earlier this year.

In response to the allegations, OSOM’s spokesperson described them as “outlandish claims” made by a former employee, expressing confidence in disproving them in court. Keats has also firmly denied any wrongdoing, but with the lawsuit hanging over the company and its closure drawing near, OSOM's once-bright future seems dim.