Jawbone, a wearable technology company owned by a Pakistani-American, Hosain Rahman, has sued Fitbit for hiring former employees of the company who were suspected of stealing confidential information. It was mentioned in the lawsuit that Fitbit recruiters contacted nearly a third of the Jawbone’s employees earlier this year. Now that Fitbit is looking for an IPO for its wearable technology, Jawbone suspects that their sensitive information including product roadmaps and market research may have been compromised.
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The two biggest competitors in the wearable market are Fitbit and Jawbone, but Fitbit seems to be ruling the wearable world right now. Most of the Jawbones latest launches are not winning favorable reviews from customers. Jawbone is the oldest company in Silicon Valley developing consumer technology and wearable devices for the past 16 years. However, it was revealed in a recent report on Bloomberg, that Jawbone has to take out a $300 million loan from Blackrock Investments which hints troubling finances. But Jawbone denied of taking any loan and clarified that $300 million cash came through a convertible note.
Jawbone commented on the lawsuit, “Demand for Jawbone’s products are extremely strong, as is the company’s financial health. The company has plenty of cash and an exciting product pipeline. Jawbone and its investors are bullish on its future.”
Image Credits: TechCrunch
