The plaintiff, Hawaii-based company Total Recall Technologies, said it hired Oculus founder Palmer Luckey in 2011 to build a prototype head mounted display. Luckey signed a confidentiality agreement, according to the lawsuit filed on Wednesday.
Throughout the latter half of 2011 and into 2012, Luckey received feedback and information to improve the design of the display. However, Luckey used information he learned from his partnership when he launched a Kickstarter campaign for his own head mounted display called the Oculus Rift, according to the lawsuit.
The lawsuit seeks compensatory and punitive damages but does not specify and amount.
Facebook’s $2 billion acquisition of Oculus last year was its first-ever hardware deal, as the company sought a way into the fast-growing wearable devices arena.
Oculus is listed as a defendant along with Luckey, and a Facebook representative on Friday declined to comment. The lawsuit was reported earlier by The Recorder, a California legal newspaper.
For its lawsuit Total Recall Technologies enlisted global law firm Quinn Emanuel Urquhart & Sullivan, which also counts Google and Samsung Electronics Co Ltd as major clients. Luckey is accused of breach of contract and fraud, among other claims.