Total Recall Technologies, a Hawaii-based company claims it hired Luckey in 2011 to build a prototype for them. Lucky apparently signed a confidentiality agreement according to the lawsuit filed last year.
Total Recall Technologies are now claiming Luckey used the information from this prototype and the partnership to start his own Kickstarter for his version of a head-mounted display, the Oculus Rift.
There is no word from anyone involved if this will affect the consumer release of the Oculus, but it could be an issue for VR as a whole. We will report more information as the case progresses.