Oura Prepares $16B IPO Amid Sleep Tracking Lawsuit

Smart ring maker Oura is planning to raise up to $3 billion in a U.S. initial public offering as soon as September 2026 that could value the company at over $16 billion, while simultaneously facing a consumer lawsuit in San Francisco over the accuracy of its sleep tracking features.

The target $16 billion valuation marks a significant increase from the $10.9 billion valuation the company secured in September 2025 following an $875 million Series E funding round backed by investors including Fidelity, ICONIQ, Whale Rock, and Atreides. The wearable technology firm generated $500 million in revenue in 2024, approximately $1 billion in 2025, and expects to reach nearly $2 billion in revenue in 2026.

The expansion comes as direct competitors like Whoop expanded into perimenopause and thyroid health tracking, achieving a $10 billion valuation in March, while Samsung introduced its Galaxy Ring entry two years ago.

However, a proposed class action lawsuit filed on August 20, 2026, by Clarkson Law Firm in San Francisco accuses Oura of deceiving buyers by claiming its wearable device provides 79% to 95% sleep-staging accuracy comparable to clinical sleep laboratories.

The complaint argues that Oura rings rely on artificial intelligence estimates rather than measuring direct brain signals, claiming that accurate sleep staging requires scalp electrodes and eye sensors found only in clinical settings.

"To capitalize on consumers' desire for a tracker that could actually track sleep and monitor their sleep cycles, Oura sold expensive tracking rings, priced at $300 and up, advertising exactly that: that Oura rings are capable of seeing what only a hospital sleep lab can see, including the four different stages of sleep," the complaint reads.

Legal representatives filing the lawsuit emphasized that consumer behavior is directly influenced by the metrics displayed on sleep tracking applications.

"When people rely on a device to guide decisions about their health, misinformation cannot be tolerated," said Ryan Clarkson, co-founder and managing partner at Clarkson Law Firm. "Oura users trust that the numbers on their screen reflect reality. People structure their days, interpret the way they feel, and design their lives around inaccurate figures spit out by these devices. Marketing an inaccurate sleep tracker as precise and reliable is dangerous because people believe it – and change their behavior accordingly."

The lawsuit seeks an injunction to halt the alleged false advertising, alongside financial restitution for affected customers.

In response to the legal filing, Oura defended its underlying technology and independent testing, confirming its intention to contest the claims.

"We stand behind our science, research, and accuracy claims. Like other consumer sleep wearables, Oura Ring estimates sleep stages using multiple physiological signals, including heart rate, heart rate variability, movement, breathing patterns, and temperature. There is well-documented, peer-reviewed independent scientific evidence that sleep stages are associated with distinct, measurable, reproducible changes in physiology, which is why these signals are reliably used to classify sleep stages," said a spokesperson for Oura.

The company noted that its metrics are regularly validated against gold-standard clinical measurements.

"While Oura Ring is not a medical device or a substitute for a clinical sleep study," said the company, "Oura's sleep staging has been validated and compared favorably in multiple studies against polysomnography, the gold standard . . .Multiple third-party, independent studies support our claims of accuracy and we have transparently reported on the mechanisms and measures that inform Oura's sleep staging."

Oura confidentially filed for an IPO in May 2026, with existing investors expected to sell a major portion of their stock during the public offering.