The wearables market continues to explode, and is expected to grow from an estimated $7.14bn in 2015 to $12.64bn in 2020. Competition among players is fierce, with native wearables companies like Pebble, Fitbit, and Jawbone now contending with tech companies Apple, Google, and Samsung.
Just weeks after Fitbit announced its intent to go public, it’s been hit with a lawsuit by Jawbone and accused of stealing trade secrets by poaching away key employees.
Close to what should be one of the biggest events of Fitbit’s life — its initial public offering of stock — the maker of wearable health trackers is facing an unexpected challenge: a lawsuit from one of its biggest competitors.
Jawbone sued Fitbit in California State Court here on Wednesday, accusing its rival of “systematically plundering” confidential information by hiring Jawbone employees who improperly downloaded sensitive materials shortly before leaving.
“This case arises out of the clandestine efforts of Fitbit to steal talent, trade secrets and intellectual property from its chief competitor,” lawyers for Jawbone wrote in the complaint.
thumbnail courtesy of nytimes.com