Ex-Facebook VR Founder Can’t Avoid Technology-Theft Lawsuit

The founder of Facebook Inc.’s virtual-reality technology unit Oculus may soon be headed back to court in a dispute alleging he used another company’s confidential information to build his own headset.

A federal appeals court in San Francisco on Monday reversed the decision of a judge who threw out Total Recall Technologies’ lawsuit because one of the company’s former partners didn’t agree to it. Thomas Seidl, withdrew from the partnership, allowing the sole remaining partner, Ron Igra, to pursue the suit, the appeals court said.

“The district court abused its discretion by requiring Thomas Seidl to consent to the ...