Facebook’s Oculus VR and its Founder Accused of Breach of Contract

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The founder of Facebook owned Oculus VR (Virtual Reality), Palmer Luckey, has been accused of breach of contract regarding the “duty of good faith and fair dealing” as well as “conversion and constructive fraud” by Total Recall Technologies, a Hawaii based VR company.  The dispute revolves around information, technology and feedback he received from Total Recall Technologies, who hired him and signed him to a contract an nondisclosure agreement in 2011.  He was to develop a VR headset for the company.

The lawsuit alleges that Palmer Luckey took the technology and information he had learned while employed by Total Recall Technologies, and left to form a kickstarter campaign for his own company, Oculus VR.  The headset in question is scheduled for release in Q1 2016, and pre-orders will in all likelihood begin after an introductory special event in San Francisco next month.

The breach of contract lawsuit filed by Total Recall Technologies reportedly “seeks compensatory and punitive damages” but does not specify any amount.

If you are a San Diego company and are concerned about the activities of a former employee or a breach of contract, we invite you to contact the Watkins Firm for a substantive and free consultation at 858-535-1511.  We have served San Diego corporate and business interests for decades, and have the experience and expertise to achieve your legal objectives.