Fitbit Flex wearable electronic fitness devices sit on display at the Fitbit Inc. pavilion on day two of the Mobile World Congress in Barcelona, Spain, on Tuesday, Feb. 25, 2014.
Bloomberg—Bloomberg via Getty Images
By Laura Lorenzetti / Fortune
May 27, 2015

Fitbit is prepping for its upcoming market debut, but its road to going public just got a lot bumpier.

Jawbone, Fitbit’s biggest competitor in the wearable health-tracking industry, alleges in a new lawsuit that Fitbit has “systematically” plundered confidential information by luring employees who brought along sensitive materials. Jawbone says Fitbit put into place “clandestine efforts” in order “to steal talent, trade secrets and intellectual property,” according to the complaint, filed Wednesday in California State Court.

Fitbit is the leader in health tracking devices. According to its initial public offering prospectus filed this month, Fitbit’s market share is nearly 85%. Jawbone, Apple and Nike are all competing for the No. 2 spot.

Jawbone’s complaint says that a number of former employees downloaded company information, like business plans and strategy documents, and took that data with them to a new position within Fitbit using thumb drives. It quotes an unnamed executive search consultant saying, “Fitbit’s objective is to decimate Jawbone.”

Jawbone is asking for both financial damages and the court’s intervention to prevent former employees from using any more information they may take.

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