Jawbone sues Fitbit, alleges theft of trade secrets

SAN FRANCISCO - Wearable health-tracking device maker Jawbone in a lawsuit accuses rival Fitbit of poaching employees who then spilled trade secrets in the emerging and lucrative tech segment.

In the San Francisco-filed lawsuit, Jawbone cites "clandestine efforts of Fitbit to steal talent, trade secrets and intellectual property from its chief competitor." Jawbone says sensitive corporate information was transferred to portable USB devices by "a number of departed employees" before they left the company.

In a statement, Fitbit said, "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."

The company went on to say,"since Fitbit's start in 2007, our employees have developed and delivered innovative product offerings to empower our customers to lead healthier, more active lives. We are unaware of any confidential or proprietary information of Jawbone in our possession and we intend to vigorously defend against these allegations."

Asked for comment, Jawbone didn't directly address the lawsuit. A spokesperson sent an email saying it would only comment on the company's financial health. That email included a statement, attributed to spokesman Jim Godfrey, that said in part that "demand for Jawbone's products are extremely strong."

Fitbit is gearing up for an IPO -- an initial public offering -- on the stock market.

The lawsuit, filed Wednesday in the Superior Court of California, also identifies as defendants five named employees of Fitbit that once worked for Jawbone. Another unnamed 10 defendants are referred to as "Does 1 through 10," with Jawbone saying it "will amend this complaint to allege their true identities when ascertained."

Beginning early 2015, the lawsuit says, "Fitbit recruiters contacted an estimated 30 percent of Jawbone's workforce, inducing at least five employees to join Fitbit, each of them bringing access to, and intimate knowledge of, key aspects of Jawbone's business and the future direction of the market and its business."

Jawbone is headquartered in San Francisco. Fitbit has offices in San Francisco as well as Boston.

Contributing: Elizabeth Weise in San Francisco