Even though Jawbone’s Marketplace went live a few days ago, it’s still largely in the shadow of the company’s speculated downfall.
Last Wednesday, Jawbone launched Jawbone Marketplace, a site that lets users purchase devices and services that take advantage of Jawbone’s fitness tracking and data syncing capabilities.
However, as IBTimes reported that day, the financial condition of the company has been described as "perilous and currently insufficient to pay its debts" citing a recently uncovered lawsuit filing.
It was filed last August by contract manufacturer Flextronics but has only just come to public attention following an investigation by Fortune magazine.
"Jawbone has materially (and repeatedly) breached the terms of a clear and unambiguous contract to the extent of over $20m in goods received but not paid for," the lawsuit states.
Flextronics has declined to comment on the matter and Jawbone has issued a statement claiming "the fact that the lawsuit was so quickly dismissed after it was filed shows that this business dispute was really more of a miscommunication between two partners".
Jawbone is falling behind on payments to various vendors says Flextronics, citing multiple sources.
Even though one of the leading wearable tech companies, reportedly valued at more than £2bn ($3bn) is having a hard time, it didn’t stop it from going forward with the Marketplace - online store offering third party IoT devices that tap into its UP ecosystem.
“At Jawbone, we embrace the promise of the Internet of Things. We can only put all this together if we work with others… This notion of an open ecosystem is critical to making the Internet of Things a success,” said Hosain Rahman, Jawbone’s CEO.