NFC TIMES Exclusive – The founders of former payments wearables provisioning company Fit Pay, which was acquired last September for $3.3 million by smartwatch and fitness band maker Garmin, have sued the device maker and two other parties, claiming they are owed millions in missed earn-out payments.
Michael Orlando and other former founders and shareholders of Fit Pay contend that Garmin “seized” the provisioning technology at a “fire sale” price and is not cooperating with an earnout deal agreed to by former Fit Pay parent Nxt-ID. The lawsuit complaint, however, offers little direct proof of its claim that Fit Pay technology has helped Garmin to “generate millions of dollars in revenue.”
A Garmin spokeswoman, responding to a request for comment from NFC Times, said that the company would not comment on the details of pending litigation, but contends that the plaintiffs' claims against Garmin are false and “have no merit in fact or law.”