FitBit may be in some hot water.
The fitness tracker company is being sued by rival Jawbone under complaints that FitBit stole information from Jawbone through Jawbone employees who were leaving the company (to work at FitBit), reports the New York Times. Jawbone's complaint against Fitbit is that FitBit contacted Jawbone employees and recruited them to Fitbit. The employees who decided to leave Jawbone allegedly downloaded Jawbone's present and future business plans off company computers through flash drives:
"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.
Jawbone is seeking financial damages and "relief from the court to prevent the former employees from using the information jawbone says say they took from the company" as part of the lawsuit.
Jawbone ranks second to FitBit in the fitness tracker market according to VentureBeat. FitBit recently filed for an IPO with hopes to raise $100 million for development of new products and marketing efforts. Meanwhile, Jawbone recently had to take out a $300 million loan because they seem to be tanking. We'll see after this lawsuit if that is true!