The war on wristwatches is heating up as Jawbone is taking Fitbit to court over stolen data taken by ex-employees. The data included things such as product roadmaps and market research.
According to documents filed in a California court, Jawbone states that Fitbit recruiters reached out to a third of Jawbone’s employees earlier this year with some employees jumping ship.
It is no rumor that Fitbit, the wireless wearable sensor company is inching closer to an IPO while Jawbone’s latest wearable products have not been garnering positive reviews with early adopters.
Bloomberg reported that Jawbone took out a $300 million loan from Blackrock Investments which has analysts suspecting the company is having financial problems. Jawbone is adamant that this information is not true, revealing instead that the $300 million was cash by way of a convertible note.
“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.”
It is too soon to say if Jawbone will be able to increase its share of the wearable market but according to NPD Group data, Fitbit has 85 percent of the connected activity tracker market. With Apple dipping into the game with its Apple Watch, one has to wonder if Jawbone can keep pace.