Get All Access for $5/mo

Jawbone Accuses Fitbit of Stealing Confidential Company Information Via Poached Employees Earlier this year, according to the suit, Fitbit contacted one-third of Jawbone's workforce -- several of whom downloaded sensitive documents before being hired away.

By Geoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

Two of the world's biggest activity tracking companies are now primed for a nasty legal dust-up.

Jawbone filed suit against Fitbit in a California State Court yesterday, alleging that its opponent had stolen confidential company information. Jawbone says that Fitbit systemically poached employees, who downloaded sensitive presentations and product plans prior to departing the company, reports The New York Times.

The suit arrives on the heels of Fitbit's IPO filing earlier this month, in which the company touted its dominance in wearables -- having sold 21 million devices since its founding in 2007 and comprising 85 percent of the U.S. connected activity tracker market, according to NPD data cited in its prospectus.

Related: Google Reportedly Eyeing 'Strategic Investment' in Struggling Wearables Pioneer Jawbone

In the suit, Jawbone claims that Fitbit contacted one-third of its employees earlier this year -- several of whom downloaded documents onto thumb drives and then used programs to conceal this activity.

One such hire, Ana Rosario, is accused of participating in a private meeting with senior management after having already accepted a position at Fitbit. Rosario also admitted to downloading Jawbone's "Market Trends & Opportunities' presentation, according to the complaint.

"As the pioneer and leader in the connected health and fitness market, Fitbit has no need to take information from Jawbone or any other company," Fitbit said in a statement to the Times. "We are unaware of any confidential or proprietary information of Jawbone in our possession and we intend to vigorously defend against these allegations."

Related: How We're Measuring Ourselves to Better Health

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Is One Company to Blame for Soaring Rental Prices in the U.S.?

The FBI recently raided a major corporate landlord while investigating a rent price-fixing scheme. Here's what we know.

Side Hustle

This Former Starbucks Employee Started a Side Hustle That's Making More Than $70,000 a Month — and He's Not Done Yet

When Tom Saar moved to New York City, he spotted a lucrative business opportunity.

Devices

Stay Focused at Work with These $110 Beats Fit Pro Earbuds

Lock in with a great deal on earbuds with spatial audio and active noise cancellation.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Amazon Has a Blank Book Problem: Buyers Report Receiving Fakes of Bestselling UFO Book

The book looked fine on the outside, but the inside was out-of-this-world.

Green Entrepreneur®

Why You Need a Contribution Mindset to Thrive in 2024 and Beyond

How to set yourself and your business up for long-term success.