Wearable fitness tracker maker Fitbit sued by rival Jawbone

Reuters News
Posted: May 27, 2015 4:32 PM

By Dan Levine

SAN FRANCISCO (Reuters) - Wearable fitness tracking device maker Fitbit Inc is being accused by rival Jawbone of attempting to steal core confidential data about Jawbone's business, according to a lawsuit filed on Wednesday.

The lawsuit, filed in San Francisco Superior Court, alleges Fitbit engaged in a clandestine effort to steal talent, trade secrets and intellectual property. A number of recently departed employees used USB thumb drives and other tactics to take information about Jawbone's supply chain, gross margins, product lineup and market predictions, the lawsuit said.

Fitbit, which makes both wristbands and clippable devices that monitor a user's fitness activity, filed for an initial public offering earlier this month. The company's revenue almost tripled to $745.4 million in 2014 and it posted a profit of $131.8 million.

Fitbit representatives could not immediately be reached for comment.

Jawbone, which also makes fitness tracking devices, is seeking unspecified compensatory and punitive damages, along with an order prohibiting former Jawbone employees from disclosing additional trade secrets.

The lawsuit was reported earlier by the New York Times.

(Reporting by Dan Levine in San Francisco and Sai Sachin R in Bengaluru; Editing by Maju Samuel and Jonathan Oatis)