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Casper Sleep
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Casper Sleep
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Casper Sleep Inc. is an American company headquartered in New York City that designs and sells sleep products including mattresses, pillows, furniture, bedding and sleep accessories. Founded in 2014, the company initially marketed itself as a direct-to-consumer e-commerce brand before expanding into physical retail stores and partnerships with other retailers.[2] Casper’s mattresses are designed and assembled in the United States and sold across the country. In 2024, Casper was acquired by Carpenter Co., a major manufacturer of polyurethane foam and related products.[3][4]

Key Information

History

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Corporate and financial

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Casper Sleep was founded in 2014 by a group of entrepreneurs (Philip Krim, Neil Parikh, T. Luke Sherwin, Jeff Chapin, Gabe Flateman).[5] In 2014, Casper raised $1.85 million in seed funding followed by a $13.1 million Series A, with investors including Lerer Ventures, Norwest Ventures, NEA, SV Angel, Ashton Kutcher’s A-Grade, Steven Alan, Queensbridge Venture Partners, and Nas.[6][7] The company officially launched on April 22, 2014.[8]

Casper launched with a single mattress model and expanded its line as demand grew. Casper expanded into Canada in 2014,[9] and later into Europe. In 2020, Casper closed its European operations, and in 2023 its Canadian business was acquired by Sleep Country Canada.[10]

In October 2024, Casper was acquired by Carpenter Co.[3]

Products and Delivery

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Casper offers a variety of sleep products, with its core line consisting of mattress models made of foam and hybrid models made of foam and springs. Their most recent e-commerce mattress models include the Casper One, Cloud One, Dream, Dream Max, Snow, and Snow Max.[11]

Casper sells mattresses and other sleep-related products through its website, retail stores, and partner retailers. Mattresses are shipped compressed in boxes for delivery. The company also offers pillows, bedding, bed frames, and other accessories.[12]

Technology and Design

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Casper’s mattresses use multiple layers of foam with varying densities to provide support and pressure relief. Some models include zoned support foams, cooling materials, or hybrid constructions that combine foam with innerspring coils. The company has filed patents related to mattress design and has employed ergonomists and engineers in product development.[13]

Awards and recognition

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Casper has received industry recognition for product quality, durability, and marketing innovation. In 2016, Fast Company named Casper one of its “Most Innovative Companies.”[14] Consumer Reports has also reviewed Casper mattresses in independent product testing.[13]

  • 2025 – Casper One named top-rated all-foam mattress, Consumer Reports[15]
  • 2025 – Snow Max named top-rated hybrid mattress, Consumer Reports[15]
  • 2025 – Casper Snow, Dream, and Dream Max named top-rated hybrid mattresses, Consumer Reports[15]
  • 2025 – Casper Hybrid mattresses highly rated in durability, Consumer Reports[15]

In 2025, the Dream Max and Snow Max earned endorsements from the American Chiropractic Association.[16]

The company has been recognized for its marketing strategies, including a wide-ranging New York City subway campaign, the "Dreamery” mobile nap experience,[17] and the "Sleepers" campaign in which the brand hired professional sleepers.

Retail Presence

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Casper products are sold through a combination of owned retail stores and third-party retailers. As of 2025, the company operates over 40 Casper retail stores located in major U.S. cities including New York, Los Angeles, Miami, Houston, and Chicago.[18]

In addition to its direct-to-consumer website, Casper products are available at major retailers including Target, Amazon, and Costco.

The brand also partners with select wholesalers and showrooms nationwide.

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Casper Sleep

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from Grokipedia
Casper Sleep, Inc. is an American consumer goods company specializing in products, founded in 2014 and headquartered in , that pioneered the "-in-a-box" model to simplify purchasing and delivery of bedding essentials. The company was established by a group of five entrepreneurs—Philip Krim, Neil Parikh, T. Luke Sherwin, Jeff Chapin, and Gabriel Flateman—who identified an opportunity to disrupt the $14 billion U.S. industry by offering compressed, shippable sold without high-pressure sales tactics. Launched in April 2014, Casper quickly gained traction, selling out its initial inventory within weeks and expanding from a single model to a broader portfolio that includes pillows, sheets, accessories, and bedroom furniture. Casper's key innovations focus on sleep science and user comfort, featuring proprietary technologies such as Zoned Support for targeted spinal alignment in its hybrid and foam mattresses, and Snow Technology for cooling in models like the Snow and Dream Max, which are endorsed by the American Chiropractic Association. Its flagship products include the all-foam Original mattress (11 inches thick), hybrid options like the Dream Hybrid, and specialized lines for different sleep preferences, all backed by a 100-night trial and free shipping. Following the sale of its Canadian operations in 2023 and closure of European operations, Casper now operates primarily , with approximately 634 employees (as of 2024) and 62 retail stores (as of 2024) offering in-person "nap appointments" and customization services. Initially backed by , Casper went public in 2020 under the ticker CSPR but faced challenges from market saturation and competition in the space. In October 2024, it was acquired by Carpenter Co., a manufacturer, becoming an operating subsidiary in a move aimed at revitalizing the brand through enhanced and distribution capabilities. As of 2025, Casper continues to emphasize ethical U.S. and education, boasting over 110,000 five-star customer reviews and positioning itself as a leader in accessible, science-driven solutions.

Company overview

Founding and early development

Casper Sleep was founded in 2014 in by Philip Krim, Neil Parikh, T. Luke Sherwin, Jeff Chapin, and Gabriel Flateman, a group of entrepreneurs who sought to revolutionize the stagnant industry. The founders, drawn together through personal connections in the tech and worlds, key points in traditional mattress purchasing—such as high-pressure showroom sales, limited options, and cumbersome delivery—and envisioned a streamlined alternative. Their initial concept centered on a "mattress-in-a-box" model, leveraging compressible technology to enable (DTC) sales via an online platform, complete with a 100-night trial period to reduce buyer hesitation. In the lead-up to launch, the team bootstrapped operations with limited resources, accruing approximately $100,000 in personal debt through maxed-out credit cards to cover early expenses like material sourcing and sample production. They projected $1.8 million in sales for the first year, a modest goal based on market skepticism toward online sales. Development of the flagship Casper prototype involved iterative testing of multi-layer foam constructions—combining breathable open-cell foam for support and zoned for comfort—sourced from manufacturers in Georgia and refined through hands-on trials in New York. This phase highlighted the founders' commitment, as they personally handled packaging and shipping initial samples to potential investors and early customers from a apartment. The company made its online debut on April 22, , with the available exclusively through its , marking a pivotal shift toward accessible, hassle-free solutions. Demand surged immediately, exceeding projections as the initial inventory of 40 mattresses sold out on the first day, and first-month sales reached $1 million—surpassing the annual forecast in just weeks. This rapid validation underscored the viability of the DTC foam model and set the stage for Casper's expansion beyond its nascent roots.

Headquarters and corporate structure

Casper Sleep is headquartered in at , 175 , on the 40th floor, providing a central hub for its design, marketing, and administrative operations. The company also maintains design and assembly facilities across the , including manufacturing sites in Georgia and , to support its production processes. The corporate structure of Casper Sleep has evolved significantly since its inception as a private startup in 2014. It transitioned to a through an in 2020, before being taken private in 2021 by Durational Capital Management LP in a deal valued at approximately $310 million. In October 2024, Carpenter Co., a major manufacturer, acquired Casper, establishing it as a wholly owned to leverage synergies in manufacturing and efficiencies. This structure positions Casper within Carpenter's broader portfolio, which includes more than 60 global production locations and over 6,500 employees, while allowing Casper to retain operational focus on sleep products. Under Carpenter Co.'s ownership, Casper's leadership integrates with the parent company's resources for strategic guidance, though it maintains its dedicated executive team. Joe Megibow served as CEO from early 2024 until his departure in June 2025; following his exit, leadership is overseen by Carpenter Co. executives, including Senior of Consumer Products Mike McQuiston. The company employs around 634 people as of 2025, emphasizing U.S.-based production for ethical and efforts, such as reducing emissions through domestic assembly and material sourcing.

History

Launch and rapid expansion (2014–2019)

Following its launch in April 2014, Casper experienced an immediate surge in sales, generating $1.8 million in the first month—exceeding the company's projections of $1.8 million for the entire first year. This rapid uptake was driven by the innovative model, which shipped the Original Casper —a design blending comfort layers—in a compact box, appealing to urban consumers seeking convenience over traditional in-store purchases. By 2015, annual revenue reached approximately $100 million, increasing to $128 million in 2016 as the company scaled operations and refined its . Casper's branding emphasized a " " by positioning rest as a priority, leveraging campaigns and influencer partnerships to build buzz among . High-profile endorsements, such as posts from celebrities like showcasing the mattress, amplified visibility on platforms like , turning the product into a . Subway advertisements and further reinforced this narrative, focusing on science and urban living challenges to differentiate from legacy mattress brands. These efforts contributed to strong customer acquisition, with the company investing heavily in digital ads and experiential pop-ups to foster brand loyalty. Product diversification began with the core Original mattress but quickly expanded to include pillows, sheets, and accessories by 2016, allowing Casper to capture more of the sleep ecosystem. International growth followed, with entry into in November 2014 via . Expansion into started in 2016 with a launch, extending the bed-in-a-box model to new markets amid rising demand for convenient sleep solutions. Key valuation milestones underscored Casper's momentum: in 2017, the company rejected a $1 billion acquisition offer from Target, opting instead for a $75 million from the retailer to maintain . This led to near-unicorn status with a $920 million valuation that year, culminating in full achievement in 2019 at $1.1 billion following a $100 million funding round.

Initial public offering and challenges (2020–2021)

Casper Sleep filed its S-1 registration statement with the U.S. Securities and Exchange Commission on January 10, 2020, outlining its plans for an (IPO) amid growing investor interest in brands. The company priced its IPO at $12 per share on February 5, 2020, offering 5.5 million shares of Class A common stock and raising $66 million, with a of approximately $470 million at pricing; trading debuted on the under the ticker CSPR the following day—this marked a significant from its $1.1 billion private valuation in a 2019 funding round. Following the IPO, Casper's stock experienced an initial surge of over 25% on its first , closing at $15.19, but quickly declined amid broader market volatility and company-specific challenges. By mid-2020, shares had fallen below the IPO price, trading as low as $8 by , representing a drop of more than 30% from debut levels, driven by investor concerns over operational inefficiencies. Key factors included elevated return rates for mattresses, estimated at 10-15% or higher due to the company's generous 100-night , which incurred substantial and disposal costs estimated in the tens of millions annually. Additionally, intense in the direct-to-consumer mattress sector from rivals like Tuft & Needle and eroded market share, while annual marketing expenses reached $157 million in 2020, accounting for 31.6% of as the company invested heavily in digital advertising and retail partnerships to drive growth. Despite these headwinds, Casper reported net of $497 million for , a 13.1% increase from $439 million in , fueled by strength and new product launches. However, the company posted a net loss of nearly $90 million, exacerbated by the pandemic's disruption to physical retail showrooms and in-store trials, which limited and contributed to delays in foam and fabric sourcing. Ongoing losses highlighted the challenges of scaling a returns-heavy model during economic uncertainty, with gross margins pressured to around 51% after accounting for returns and fulfillment costs. Leadership transitions added to the turbulence, as and Greg Macfarlane departed in May 2020 to pursue opportunities outside the sleep industry, prompting a corporate that included laying off 21% of staff and exiting European operations by year-end to cut costs by over $10 million annually. Co-founder and CEO Philip Krim remained at the helm through 2020 but announced his departure in November 2021, shortly before the company's privatization, amid efforts to stabilize operations. These changes underscored Casper's shift toward cost discipline and focus as it navigated its brief public tenure.

Privatization and recent acquisitions (2021–2025)

In November 2021, Casper Sleep announced an agreement to be acquired by Durational Capital Management LP, a , for $6.90 per share in cash, representing a 94% premium over the company's closing stock price on November 12, 2021. The deal valued Casper at approximately $308 million and was approved by shareholders in January 2022, closing shortly thereafter and taking the company private. This transaction marked Casper's exit from public markets less than two years after its , amid challenges including declining stock performance and operational pressures. Following the privatization, Casper shifted its strategic emphasis toward achieving profitability rather than aggressive growth. Under new CEO Emilie Arel, who assumed the role in early 2022, the company implemented cost-cutting measures and a "culture of " to prioritize sustainable earnings. In August 2022, Arel stated at the eTail Boston conference, "We're not in the business of not making money anymore," underscoring the transition from expansion-focused strategies to and positive generation. These efforts included streamlining supply chains and reducing spend, which helped stabilize the business during a period of economic uncertainty in the consumer goods sector. In October 2024, Durational sold Casper to Carpenter Co., a leading manufacturer of foams and comfort products, for an undisclosed amount, positioning Casper as a wholly owned . The acquisition aimed to leverage Carpenter's manufacturing expertise for synergies in production and , while fostering innovation in Casper's sleep product ecosystem. Carpenter's leadership expressed intent to support Casper's growth through enhanced operational capabilities, including improved product development and distribution efficiencies. By 2025, under Carpenter's ownership, Casper outlined plans for a strategic comeback, focusing on refreshed product offerings and bolstered U.S. market presence. The company introduced the Cloud One mattress, featuring the proprietary Casper Core+ technology, with a launch in late 2025 to expand its premium lineup. This initiative complemented Casper's existing portfolio of five top-rated mattresses, all earning high marks from , and emphasized consistent product availability and reliable delivery to retail partners. Casper President Mike McQuiston highlighted the renewed emphasis on supporting wholesale channels, stating, "We’re now offering consistent products that arrive on time... We’re thrilled to support our retail partners." These developments signaled a broader push for market renewal, with increased investments aimed at driving consumer awareness and sales growth across the .

Products and services

Mattresses and sleep systems

Casper's core mattress offerings consist of all-foam and hybrid models designed for pressure relief, spinal alignment, and temperature regulation, with innovations like zoned support and breathable foams. These systems are compressed into a -in-a-box format for easy shipping and setup. The flagship Original is an all-foam featuring three layers: a breathable polyurethane top foam, zoned for targeted support under the hips, waist, and lower back, and a durable base foam, measuring 11 inches in height with a medium-firm feel rated around 6-7/10. The Element serves as the budget foam option, with a 10-inch profile of three polyurethane foam layers including a perforated top for airflow, offering medium firmness (6.5/10) and responsive support suitable for basic needs. The premium Wave Hybrid, now evolved into the Snow model, incorporates layers such as Soothe and Align , flex coils for bounce, and cooling technologies like HeatDelete Bands and phase-change materials, providing zoned support in a 12-inch hybrid construction with medium to medium-firm firmness (5-7/10). In 2025, Casper introduced updated models to refresh its lineup. The Essential 2025 is a budget-friendly 11-inch all-foam with three layers—Breathe Flex Foam top for responsiveness, Breathe Foam middle for softness, and a Casper Core base—emphasizing breathability and priced from $395 to $795 across sizes. The Dream Hybrid, an affordable 12-inch medium-feel option replacing the Original Hybrid, combines zoned foam, flex coils, and Breathe Flex Foam for balanced pressure relief and motion isolation, ideal for multiple sleep positions. The One Foam, at 11 inches, delivers continuous support through three engineered foam layers including a responsive Breathe Flex top, offering medium-firm balance (6/10) for all-around versatility. Most Casper mattresses include key features such as compression into a for direct delivery, a 100-night after a 30-night adjustment, a 10-year limited covering mattresses purchased directly from Casper or from authorized retailers; mattresses sold by unauthorized resellers are not eligible for warranty coverage, and ethical assembly in the using CertiPUR-US certified foams free of harmful chemicals. Casper mattresses use a knit sock made from silica that sits just under the mattress covers as a fire barrier. Exceptions include the Essential 2025, which is a final sale with no and a 5-year . These elements prioritize pressure relief via contouring foams, bounce from responsive layers or coils, and temperature regulation through open-cell and cooling-infused materials. Performance-wise, Casper models generally rate medium-firm (5-7/10), making them suitable for back and sleepers who benefit from the zoned and continuous support for spinal alignment, though side sleepers may find them less plush. Return rates remain notable, around 12-14% industry-wide for similar brands, often due to subjective comfort preferences during the trial period.

Bedding and accessories

Casper's bedding and accessories complement its core sleep products by enhancing comfort, temperature regulation, and overall . The company's pillow lineup includes the Original Pillow, which features a pillow-in-pillow design with down-alternative fill and a breathable cotton cover for a soft yet supportive feel suitable for all sleep positions, allowing users to adjust loft by fluffing, compressing, or removing the inner pillow as needed. It is available in Standard (18" x 26") and King (18" x 34") sizes. As of February 2026, the Casper Original Pillow has a regular price of $75 and a sale price of $67.50 (10% off). The Foam Pillow, constructed from breathable , provides targeted neck and head alignment, making it particularly effective for side sleepers seeking pressure relief. Additional options like the Hybrid Pillow combine soft foam and fiber fill for customizable support, while cooling variants such as the Foam Pillow with Snow Technology incorporate heat-dissipating materials to maintain breathability throughout the night. Bedding essentials from Casper emphasize and temperature-regulating properties to promote restorative sleep. The cooling sheets, made from premium in or weaves, feature moisture-wicking capabilities derived from natural fibers for a crisp, airy sensation that helps regulate body temperature. Duvets are filled with ethically sourced down or , certified under the Responsible Down Standard (RDS) for softness and insulation without overheating, and pair with covers to minimize allergens. Mattress protectors utilize waterproof yet breathable fabrics to safeguard underlying surfaces while preserving airflow and comfort. Among accessories, Casper offers the Comfy Mattress Topper, a layer of cradling that adds cushioning and pressure relief to existing setups, enhancing softness without altering the primary surface. These items are designed for seamless integration with Casper mattresses, such as pairing and toppers to optimize spinal alignment. Sales often feature bundling options like the Silent Night Bundle, which combines with ambient lighting for a complete system, supported by a 30-night trial period and commitments to ethical sourcing across materials.

Furniture and home goods

Casper expanded its product line beyond mattresses to include bedroom furniture, emphasizing designs that complement sleep environments through clean lines, premium materials, and seamless integration with its sleep systems. The company's furniture offerings focus on functionality and aesthetics, prioritizing durability and ease of setup to enhance user experience. This move aligns with Casper's broader diversification strategy during its growth phase. The Haven Bed Frame features felted and a midcentury-inspired silhouette with an angled headboard for added comfort during reading or lounging. Constructed with premium materials, it serves as a platform bed that eliminates the need for a and directly supports Casper mattresses, promoting airflow and stability. Priced starting at $1,895 for a queen size, the Haven positions itself in the mid-range luxury segment, appealing to consumers seeking sophisticated, low-maintenance pieces that assemble without tools. In contrast, the Repose Bed Frame adopts a minimalist wood design using sustainably sourced solid wood, with softened edges for a welcoming feel and a sturdy slat system optimized for hybrid mattresses. Available in finishes like natural or dark , it starts at $1,195 for a queen and includes options for wood or pillow headboards, ensuring compatibility with Casper's and hybrid models. This frame highlights Casper's emphasis on eco-conscious materials and tool-free assembly, typically completed in under 30 minutes, to facilitate easy integration into existing bedrooms. While specific 2025 furniture innovations remain focused on refining existing lines, the overall Casper's furniture maintains mid-range pricing—typically $1,000 to $2,500—targeting accessibility while underscoring compatibility and simplicity for enhanced sleep quality.

Operations and distribution

Direct-to-consumer sales

Casper Sleep pioneered a direct-to-consumer (DTC) e-commerce model centered on its official website, casper.com, where customers can purchase mattresses and sleep products online with streamlined logistics. The company offers free shipping to the contiguous United States for all mattress orders, utilizing a "mattress-in-a-box" compression technology that allows for compact packaging and nationwide delivery via standard carriers. This approach eliminates traditional retail intermediaries, enabling quick and cost-effective fulfillment directly to consumers' doors. A of the DTC experience is the 100-night risk-free , during which customers can test products in their own homes before deciding on a purchase. If unsatisfied, Casper provides free returns, provided the mattress is in good condition, including pickup and or of the , fostering consumer confidence in an otherwise high-commitment purchase. These policies, introduced early in the company's history, have been key to building trust and driving online conversions by reducing perceived purchase risk. Casper's digital marketing strategy heavily emphasizes (SEO), engagement, and influencer partnerships to attract traffic to its DTC platform. The company invested significantly in these channels pre-2020, with marketing expenditures reaching $154.6 million in 2019 alone, much of it allocated to paid search, , and social campaigns on platforms like . Influencer collaborations, particularly with lifestyle creators on and , helped position Casper as a modern brand, generating buzz through authentic endorsements and . further nurtures leads with personalized promotions, contributing to high engagement rates in the competitive DTC space. To enhance customer service within the DTC model, Casper incorporates interactive tools like its virtual mattress quiz, a quick online assessment that collects user preferences on sleep position, , and firmness to deliver personalized product recommendations. This data-driven feature uses algorithmic matching to suggest tailored systems, improving satisfaction and reducing decision fatigue for online shoppers. While Casper offers bundles for one-time purchases, it has explored subscription-like options for recurring essentials, though these are not prominently featured as refills programs. Following its in late 2021, Casper shifted focus toward DTC profitability by optimizing marketing efficiency and . Under private ownership, the company reduced reliance on broad acquisition spending through more targeted digital ads, leveraging first-party for precise segmentation on social platforms. Loyalty initiatives, including referral programs and AI-powered personalized support via chatbots, have aimed to lower long-term acquisition costs by encouraging repeat purchases and word-of-mouth referrals, aligning with broader DTC trends toward sustainable growth.

Physical retail presence

Casper began its physical retail expansion in 2018 with the opening of its first permanent store, the Casper Sleep Shop, in New York City's NoHo neighborhood, marking a shift from its model toward an approach. This 3,000-square-foot location featured six mini-bedrooms designed for product testing, setting the stage for experiential retail. By 2020, Casper had grown to 67 retail stores across the , with a notable concentration in , where it operated 11 locations. As of late 2024, the company maintained 62 company-owned stores, primarily in major U.S. markets such as New York and , reflecting a focus on high-density urban and suburban areas to enhance customer accessibility. Casper's stores emphasize interactive and educational experiences to differentiate from traditional mattress retail. Early designs included trial bedrooms for hands-on product interaction and "nap appointments" allowing customers to test sleep setups with provided kits. In 2024, Casper introduced updated store concepts, such as the Snooze Bar—a dedicated consultation area staffed by sleep specialists—and the Bedroom DeZzzign Center, where customers can customize bedroom setups using Casper's product portfolio. These features aim to provide personalized guidance on sleep solutions, including selection and accessory pairings. In , Casper's presence is facilitated through partnerships rather than owned stores; since 2021, Sleep Country has exclusively offered Casper products across its locations, following the 2023 sale of Casper's Canadian operations to the retailer for $20.6 million. Following its acquisition by Carpenter Co. in October 2024, Casper has pursued strategies to expand its U.S. physical footprint, with plans as of late 2024 to double the number of stores by the end of 2025 to support broader and integrate manufacturing efficiencies. This integration leverages Carpenter's expertise to enhance in-store product availability and customization options.

Partnerships and wholesale channels

Casper Sleep began expanding its wholesale channels in 2017 through a partnership with Target, making it the exclusive mattress brand available on Target.com at launch and enabling in-store availability across hundreds of locations. This deal followed Target's consideration of acquiring Casper, which ultimately led to the retail collaboration instead. By 2020, Casper had forged additional major U.S. partnerships, including with for mattress sales in its stores, for bedding and sleep products, for broader department store distribution, Amazon for online sales of mattresses, and Costco for the sale of exclusive Casper Cooling Select mattresses (including 12" Memory Foam and Hybrid models) that are customized for Costco and differ from the standard models available on the official Casper website. These alliances, announced amid post-2019 efforts to diversify beyond saturation, grew to 29 wholesale partners by 2021, encompassing retailers like and alongside bundled offerings of mattresses with accessories. Internationally, Casper established wholesale presence in through Sleep Country, where its products became available in stores following the 2023 sale of Casper's Canadian operations to the retailer for $20.6 million, integrating Casper into Sleep Country's locations. European wholesale channels were limited and discontinued in 2020 as Casper shut down all continental operations, including retail partnerships, to focus on North American profitability. Wholesale channels contributed significantly to Casper's growth, with partnerships helping offset direct declines and supporting bundled product that accounted for a substantial portion of overall net of approximately $580 million in 2021. In 2024, Carpenter Co. acquired Casper, positioning it as a to leverage manufacturing expertise for enhanced wholesale distribution synergies, including expanded and broader retailer access amid a recovering U.S. market in 2025. This strategy builds on prior wholesale pushes, aiming for profitability through optimized channels by late 2025.

Disputes with review sites

In September 2017, Casper Sleep intensified public scrutiny of its ongoing legal disputes with mattress review websites by highlighting allegations of undisclosed practices. The company had initially filed lawsuits in April 2016 against three prominent sites—Sleepopolis, Mattress Nerd, and Sleep Sherpa—accusing them of posing as independent reviewers while earning undisclosed commissions from Casper's competitors, such as Leesa and Tuft & Needle. Casper alleged that these sites violated (FTC) guidelines on endorsement disclosures by failing to transparently reveal financial incentives, which led to negative reviews of Casper products and recommendations favoring rivals, resulting in millions of dollars in lost sales for the company. The lawsuits sought , injunctive relief to halt the deceptive practices, and corrections to the review content. The cases resolved through settlements reached between 2016 and 2018, with Mattress Nerd and Sleep Sherpa settling quickly in by removing their negative Casper reviews and agreeing to proper disclosures. Sleepopolis settled in July 2017, after which Casper provided a multimillion-dollar to JAKK Media LLC, enabling the acquisition of Sleepopolis (and the related site SlumberSage); the new ownership committed to disclosing affiliate relationships and Casper's financial involvement. These resolutions underscored the "mattress wars," a fierce competition among brands vying for visibility in a market exceeding $1.2 billion in annual sales by 2017. The disputes exposed vulnerabilities in direct-to-consumer sleep brands' heavy reliance on digital marketing and influencer authenticity, prompting greater industry emphasis on FTC-compliant transparency in affiliate-driven reviews to maintain consumer trust.

Privacy and tracking allegations

In November 2017, Brady Cohen filed a putative class action lawsuit against Casper Sleep Inc. and NaviStone Inc. in the United States District Court for the Southern District of New York (Cohen v. Casper Sleep Inc., No. 1:17-cv-09325). The complaint alleged that code embedded on Casper's website (casper.com) used NaviStone's technology to intercept visitors' electronic communications in real time, including keystrokes, mouse clicks, form inputs (such as names and addresses), and other interactions, without users' consent. Plaintiffs claimed this enabled the de-anonymization of anonymous site visitors by matching data to NaviStone's consumer database for targeted marketing purposes, violating the Electronic Communications Privacy Act of 1986 (specifically the Wiretap Act, 18 U.S.C. § 2511) through unauthorized interception, disclosure, and use of communications. On July 12, 2018, the court dismissed the Wiretap Act claims, determining that no unlawful interception occurred under the statute because Casper, as the website operator, was a party to the electronic communications on its own site. The court further dismissed related federal claims and declined to exercise supplemental jurisdiction over state law claims. The dismissal did not involve any admission of wrongdoing by Casper.

Patent infringement cases

In September 2017, Serta Simmons Bedding LLC and Dreamwell Ltd. filed a patent infringement lawsuit against Casper Sleep Inc. in the U.S. District Court for the Southern District of New York, alleging that Casper's Wave mattress infringed three patents owned by Serta: U.S. Patent Nos. 8,707,173; 9,050,227; and 9,763,935. These patents relate to foam mattress designs featuring channels that enhance airflow and cooling, and Serta claimed that the Wave's similar channel structure allowed Casper to market it as a premium product with improved breathability. Casper responded with counterclaims in November 2017, accusing Serta of inequitable conduct during the process by withholding material references, including two earlier patents that disclosed similar channel designs. The district court denied Serta's motion to dismiss these counterclaims in 2018, allowing the inequitable conduct allegations to proceed alongside Casper's motions for of non-infringement. While the summary judgment motions were pending, the parties reached a settlement agreement in June 2018, under which Casper agreed to pay Serta $300,000 within ten days and to cease manufacturing, marketing, and selling the accused Wave mattress features, with mutual releases and dismissal of all claims to follow shortly thereafter. Despite notifying the court of the settlement, the district judge granted Casper's motions of non-infringement in July 2018. Serta appealed to the U.S. Court of Appeals for the Federal Circuit, which in February 2020 vacated the district court's order, affirmed the denial of Serta's motions to enforce the settlement, and remanded with instructions to enforce the agreement and dismiss the case as moot, emphasizing that voluntary settlements generally render underlying disputes non-justiciable absent fraud or violations. The settlement did not include any admission of infringement by Casper, but it effectively resolved the dispute over the patented channel technology in foam mattresses.

Securities and investor litigation

In June 2020, shareholders led by Robert Lematta filed a lawsuit against Casper Sleep Inc. and certain executives in the U.S. District Court for the Eastern District of New York, alleging violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. The complaint centered on purportedly misleading statements and omissions in Casper's February 2020 registration statement (S-1), which plaintiffs claimed overstated the company's growth potential and profitability prospects while understating key operational risks. Key allegations included the failure to adequately disclose the impact of Casper's 100-night , which resulted in high return rates of approximately 10-15% of gross revenue, significantly eroding margins and contributing to substantial losses. Plaintiffs further contended that the S-1 downplayed marketing inefficiencies, including elevated customer acquisition costs driven by heavy digital advertising spend, which masked underlying challenges in scaling the model amid competitive pressures and the onset of the . These disclosures, according to the suit, led to a sharp decline in Casper's price from its $12 IPO offering to below $7 per share within months, causing economic losses to investors who purchased shares traceable to the offering. The case progressed with a first amended in October 2020, followed by a second amended on June 30, 2021, which refined the claims after defendants' initial motion to stay proceedings. In September 2022, the court granted in part and denied in part the defendants' motion to dismiss the second amended , allowing certain Securities Act claims to proceed while dismissing others for lack of particularity or actionable misstatements. The litigation continued through discovery and until 2024, when the parties reached a proposed $3 million all-cash settlement on behalf of the class of investors who acquired Casper pursuant or traceable to the IPO. The U.S. District Court granted preliminary approval to the settlement on July 18, 2024, and final approval on February 6, 2025; the agreement provided for compensation to eligible class members without any admission of liability or wrongdoing by Casper or the individual defendants. This resolution came amid Casper's broader post-IPO struggles, including ongoing losses that culminated in its $1.1 billion acquisition and by Duru LLC in November 2021. The lawsuit underscored transparency challenges for companies transitioning to public markets, contributing to investor scrutiny that influenced Casper's eventual delisting from the .

References

  1. https://www.cnbc.com/2019/04/05/how-caspers-founders-built-a-billion-dollar-mattress-start-up.html
  2. https://www.retaildive.com/news/casper-sleep-sold-acquired-mattress-manufacturer-carpenter-co/731847/
  3. https://entrepreneurship.brown.edu/project/casper/
  4. https://www.investing.com/equities/casper-sleep-inc-company-profile
  5. https://casper.com/collections/mattresses
  6. https://www.sleepline.com/casper-mattress-review/
  7. https://www.ibisworld.com/united-states/company/casper-sleep-inc/429995/
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  49. https://casper.com/products/casper-dream-hybrid
  50. https://casper.com/products/casper-one-foam
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  64. https://casper.com/products/haven-bed-frame
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  66. https://casper.com/products/repose-bed-frame
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  117. https://www.marketwatch.com/story/casper-sleep-falls-another-19-to-trade-below-10-or-18-below-ipo-price-2020-02-11
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  123. https://www.strategicclaims.net/wp-content/uploads/2024/07/2024-07-18-preliminary-approval-order-Casper.pdf
  124. https://securities.stanford.edu/filings-case.html?id=107443
  125. https://www.strategicclaims.net/wp-content/uploads/2024/10/Lematta-v-Casper-Sleep-Inc-et-al-Docket-No-120-cv-02744-EDNY.pdf
  126. https://www.fastcompany.com/90697250/casper-is-going-private-again-at-a-quarter-its-original-ipo-price
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