Osom Products, the phone company founded by ex-Essential employees, is shutting down

Osom Products Inc. — the mobile phone company founded by former employees of Essential, which shut down after releasing a single phone — is reportedly shutting down this week, having released a single phone.

The news comes shortly after Osom’s former chief privacy officer sued the company, claiming that it’s out of money after its CEO used business funds to pay for personal trips and exotic cars.

During an internal meeting on Tuesday, Osom executives announced their decision to shutter the company, according to multiple sources who spoke to Android Authority. The report claims that most of the company’s employees will be laid off on Friday but will receive severance pay and be eligible for continued healthcare.

The company partnered with blockchain company Solana later that year to launch a version of the OV1, now called the Saga, with a built-in crypto wallet and other apps that rely on Solana’s blockchain features. A few engineers will reportedly remain on at Osom as contractors to help deliver another security update for the Saga smartphone in December and complete the company’s obligations to Solana.