Fitbit (FIT) Calls Jawbone's Latest Accusations 'Desperate'

(Updated - March 16, 2016 2:41 PM EDT)

Fitbit (NYSE: FIT) shares were on watch as Jawbone filed additional accusations against the company this week, alleging that Fitbit employees took 19 times more files than the company owned up to prior.

Jawbone initially sued Fitbit in May 2015, saying that five employees hired by Fitbit made off with files from the company upon receiving new employment.

Last summer, defendants in the case turned over 18,000 files that belonged to Jawbone, but 335,191 additional files that included information related to Jawbone were discovered and later disclosed by Fitbit. Jawbone claims the files include everything from schematics to manufacturing prices and schedules, according to engadget.

In a statement obtained by email, a Fitbit spokesperson said there is no evidence or allegation that Fitbit ever had access to the additional files Jawbone cites in its motion. It also called Jawbone's actions "desperate."

“Jawbone’s latest attempt to bring additional baseless trade secret claims comes on the heels of it suffering another defeat in its similarly meritless patent litigation against Fitbit at the ITC. Recently, the ITC judge ruled that two of Jawbone’s patents are ineligible under case law settled by the U.S. Supreme Court, and only two of its original six patents remain at issue in that case. We believe Jawbone’s latest request to file yet another amended complaint indicates desperation due to its inability to compete in the market and its setbacks at the ITC. Just like the other claims asserted in this litigation, the additional claims Jawbone seeks to assert are unsubstantiated and based on gross mischaracterizations of the events that occurred months ago," said Fitbit.

Shares of Fitbit are up over 2 percent Wednesday.

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