Jawbone is claiming that former employees were contacted by Fitbit and have plundered confidential information on their way out, which is now being used by Fitbit.

Jawbone and Fitbit are big names in the domain of wearable technology. While each brand has its set of loyal fans, currently the two smartwatch makers are locked in a legal battle as Jawbone has filed a suit against FitBit in the California Court.

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According to details revealed on Techcrunch, almost one third of employees from Jawbone left the company; however, all of these employees were contacted by FitBit almost a month ago. The lawsuit alleges that the former employees have stolen confidential information that has been handed over to the FitBit team. Also, a large part of the Jawbone employees have recently joined FitBit after quitting their job.

The news comes at a time when Jawbone is struggling to maintain its market share, in lieu of the recently released products that have not been able to match the expectations of the customers. Even for FitBit, the lawsuit could spell doom as the smart watch maker gets ready to launch its IPO issue.

It is known that the two companies have been competitors for long but it seems that FitBit is clearly making more gains as compared to Jawbone. Another report on Time points out that FitBit is the leader of the pack, when it comes to health tracking devices and as of now controls close to 85 percent of the market share. These figures put it above other big companies like Apple and Nike that have been working aggressively to establish their leadership.

Another important thing pointed out in the report says that Jawbone had taken a massive 300 million dollar loan indicating that the company could be having trouble managing its finances.

In its complaint, Jawbone is claiming that employees have downloaded a lot of their confidential data before putting their papers to the management. These employees have then moved to FitBit and passed on the information. Apart from the financial damage, Jawbone is also seeking the court's intervention to issue an order that would restrain the former employees from using any of this information. 

TagsTech News, smartwatch news, Wearable Technology, gadget news, Jawbone, FitBit