Last year, Facebook Inc. (NASDAQ:FB) joined the fast growing wearable devices arena with the $2 billion acquisition of Oculus, the virtual reality glasses maker; it was the company’s ever first hardware deal. Now, Oculus founder faced a lawsuit filed against it.
According to a lawsuit filed on Wednesday, the founder of the company has been charged for obtaining confidential information while working with another company and forwarding it as his own.
According to the report, Hawaii based Company Total Recall Technologies, said that in 2011 it hired Oculus founder Palmer Luckey to develop a prototype head mounted display. Luckey signed a confidentiality agreement with the company at that time. Luckey obtained information and feedback throughout the second half of 2011 and in 2012 in order to improve the design of the display. However, he utilized information he was provided with his partnership when he originated a Kickstarter campaign for his own head mounted display dubbed the Oculus Rift.
The lawsuit has asked for punitive and compensatory damages but does not identify any amount. On Friday, a Facebook representative refused to comment when Oculus was enlisted as a defendant along with Luckey. The lawsuit was reported by a California legal newspaper, The Recorder earlier.
According to a report, Total Recall Technologies has enrolled global law firm Quinn Emanuel Urquhart & Sullivan, whose major clients include Samsung Electronics Co Ltd and Google, for its lawsuit. Among other claims, Luckey is blamed of violating the contract and making fraud to the firm.
Facebook Inc (NASDAQ:FB)’s stock on 22 May traded at beginning with a price of $80.26 and when day-trade ended the stock finally increased 0.07% to end at $80.54. Facebook Inc (NASDAQ:FB)’s showed weekly performance of 0.15%.