Newly Publicized Lawsuit Confirms Color Inc. Sale to Apple

Get Legal Help Today

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Nov 20, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Details of a lawsuit against Color Lab Inc. made headlines yesterday as a report by Techcrunch revealed that Apple has taken control of Color’s assets. The lawsuit was brought by former founding employee, Adam Witherspoon, who is claiming to be the victim of retaliation, and is seeking damages for “humiliation, mental anguish, and emotional distress” from Color and CEO Bill Nguyen, according to reports.

It was the discovery of the company’s sale to Apple found in the language of the lawsuit, however, that has people talking. Color, a California-based start-up focused on social photography applications for phones like the Android and iPhone, has been struggling financially in recent years. The lawsuit filed against the company also reveals that with the purchase, Apple gained 20 former Color employees, in addition to acquiring company assets including intellectual property and technology rights previously thought to be excluded from the deal.

Allegations of Harassment in the Workplace

In his lawsuit, Witherspoon claims that of the 20 engineers hired by Apple from Color, he was intentionally not one of them. This would make Witherspoon the only engineer not transitioned to Apple, even though he is one of the oldest Color employees; he claims this is because Nguyen shut him out of negotiations due to a previous personal conflict. Witherspoon is also accusing Nguyen of subjecting him to a hostile work environment and harassment. (Read about how Employment Law handles hostile work environment harassment in the workplace here.)

Of the numerous reports and commentary in the news and blogosphere, many are saying the lawsuit and allegations it presents will not fare well for Apple’s reputation in light of their new hires and acquisition of Color. The company and its CEO have been denying the public information about any sale to Apple, while Nguyen mysteriously resigned. In addition, reports say the lawsuit includes additional allegations of abuse and mistreatment of other Color employees in the past. Many are still speculating regarding the extent of Apple’s involvement in the whole ordeal.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption