Oculus co-founder Palmer Luckey sued by ex-employer for breach of contract

Patrick O'Rourke

January 20, 2016 5:08pm

On the eve of the Oculus Rift’s commercial release, Palmer Luckey, as well as the company he sold to Facebook, will be sued for breach of contract, according to a report from Reuters.

According to the claim, which was just given the go-ahead to proceed by a U.S. District judge in San Francisco, Total Recall Technologies, a company based out of Hawaii, signed a deal with Luckey in 2011 that had him develop a virtual reality device for it. The contract was reportedly signed a few months before Luckey brought the Rift to Kickstarter in 2012.

The company alleges that Luckey breached his confidentiality contract, and used his work at Total Recall to create the Oculus Rift’s successful Kickstarter campaign, which ultimately resulted in Oculus being acquired by Facebook for $2 billion USD.

Oculus Rift pre-orders went live earlier this month at a price of $914 with an estimated March shipping date.

Image credit: Flickr – eVRydayVR

Related reading: Bundling Touch controllers with Rift would ‘significantly raise the cost’: Oculus

  • Marc Palumbo

    And they do this now? Looks like they want “punitive” damages…

    • My understanding is that the lawsuit was launched awhile ago, it’s just only getting approved by a judge now.

    • Marc Palumbo

      So knowing this, Luckey still continued to go ahead instead of settling. He must have nothing to hide…

    • Probably, or maybe he does. If he doesn’t have something to hide, he has an army of Facebook lawyers backing him up anyways.

    • Marc Palumbo

      And Microsoft. That partnership is running deep right now.

    • Longtin

      He will most likely still have to pay a settlement offer; if he did breach his contract.

  • Unorthodox

    Couldn’t wait for the next season of “Silicon Valley”.