OSOM Products, the smartphone company emerging from the dissolution of Andy Rubin's Essential, is set to shut down this week amid serious allegations against its CEO, Jason Keats. According to internal announcements and reports from Android Authority, Keats informed employees of the closure, with most being laid off by Friday. A minimal team will remain to release a final software update for the Solana Saga smartphone.

The closure follows a lawsuit by Mary Stone Ross, OSOM's former Chief Privacy Officer, filed in Delaware's Court of Chancery. Ross alleges that Keats misused company funds for personal expenses, including buying two Lamborghinis and funding his racing hobby. The lawsuit demands access to OSOM's financial records to verify these claims, which point to extravagant spending by Keats on travel and mortgage payments, potentially depleting the company's resources.

Founded in 2020 by ex-Essential employees, OSOM initially aimed to produce privacy-focused devices but shifted focus to blockchain technology, collaborating with Solana to develop the Saga smartphone. However, plans for a successor device fell through earlier this year. In response to the allegations, an OSOM spokesperson dismissed them as outlandish and expressed confidence in disproving them in court, with Keats denying the accusations of financial misconduct.