A California court has dismissed a lawsuit filed by Magic Leap against Chinese augmented reality company Nreal, according to a report from TechNode.

Magic Leap had accused Nreal, which was founded by its former employee Chi Xi, of stealing its technology to quickly create a competing product in the form of the Nreal Light augmented reality glasses.

"Whereas Nreal purported to develop its Nreal Light product in under two years, Magic Leap developed its technology after extensive investment of time (multiple years), money (hundreds of millions of dollars spent on research and development) and human resources (hundreds of engineers)," reads the lawsuit filed in June 2019. 

Now, almost a year later, the court has dismissed the lawsuit because Magic Leap failed to explain exactly how the alleged IP theft took place. 

Documents obtained by TechNode reveal the court granted Nreal's motion to dismiss due to a lack of "factual support" for Magic Leap's allegations. 

Nreal also claimed that Magic Leap's accusation was "vague and unsubstantiated," and that it was "filing lawsuits to slow down new entrants into the AR market."

"From the beginning we’ve firmly stated that Magic Leap’s claims against Nreal are meritless," added Nreal founder Xu Chi in a statement. "The fact that the court found that Magic Leap failed to state a single viable claim is telling."