Sun Sentinel Palm Beach Edition
Magic Leap sues security director
PLANTATION — Magic Leap is suing its global security head, asserting he tried to ‘extort millions of dollars’ by threatening to make legal claims against the Plantation company.
The company alleges that Todd Keil, its “senior director of global security,” has demanded the payment of millions from Magic Leap in exchange for not publicly filing “whistleblower claims” that include alleged illegal conduct concerning competitor Microsoft’s HoloLens device, a virtual reality headset that’s already on the market.
The Magic Leap lawsuit was filed Feb. 28 in U.S. District Court in the Eastern District of Texas. Keil is a Texas resident who was hired in 2015 after leaving his position at the Department of Homeland Security in 2012.
Keil is “senior director of global security” at Magic Leap, according to the complaint. His security duties include workforce, buildings and intellectual property-related responsibilities, as well as strategic business risk mitigation, according to the lawsuit.
Among the “false legal claims” allegedly made by Keil, according to Magic Leap's lawsuit, was a situation where Microsoft’s HoloLens devices were delivered to Magic Leap’s offices. Magic Leap said two of the devices were “legally obtained” by business partners as participants in Microsoft’s developer program. Magic Leap “confiscated” the devices and returned them to Microsoft.
“There was no effort at reverse engineering the product,” Magic Leap states in the lawsuit .
Keil and Magic Leap’s lawyers couldn't immediately be reached for comment late Friday.
But Keil contended in a draft lawsuit provided to the company’s general counsel that Magic Leap’s management “rejected his recommendation that all of the HoloLens devices be confiscated and returned.”
Magic Leap spokeswoman Julie Gaynor issued this statement
Friday: “We have worked hard to cultivate a culture of respect and trust within our company, and a reputation of integrity within our industry. That is why we are particularly disappointed that one of our employees is attempting to extort Magic Leap into a multi-million dollar settlement based on false accusations. Given the employee’s continued insistence on a monetary payout for false claims, we have opted to protect our company and our stakeholders by proactively commencing litigation and removing the employee’s ability to threaten Magic Leap.”
Magic Leap alleges in its lawsuit that Keil asserts he is a victim of retaliation by the company for certain issues he raised with his supervisor, and says Keil’s lawyer told Magic Leap she is pursuing a “right to sue” from the Equal Opportunity Employment Commission.
Magic Leap claims in the lawsuit that Keil failed to carry out his duties, keep in regular contact with the company, and retained a U.S. security firm he had a personal relationship with for a security job in Israel at a cost of more than $250,000 a year.
This isn’t the first time Magic Leap has sued an employee — or counter-sued.
In May last year, Magic Leap settled a gender bias lawsuit filed by the company’s former vice president of strategic marketing executive, Tannen Campbell. She alleged in federal court that she had been hired to turn the company into less of a “boys club,” was thwarted in that effort by top executives, and then wrongfully fired.
In August, Magic Leap came to a “confidential agreement” in a lawsuit against former California executives Gary Bradski and Adrian Kaehler, and Robotics Actual, even though a California federal judge had dismissed the case. Bradski and Kaehler had also filed a wrongful termination lawsuit against Magic Leap.
Magic Leap has become one Broward County’s largest private employers. Its lawsuit against Keil says the company employs 1,400 people worldwide. Magic Leap has topped venture capital lists in Florida by raising $1.9 billion in financing from companies including Google and Chinese ecommerce company Alibaba. It is preparing later this year to manufacture its first product, a wearable computer called Magic Leap One.